The 30-share index, which lost 745.68 points in the previous two sessions, fell further by 118.18 points, or 0.59 percent, to 19,782.78. Similarly, the wide-based National Stock Exchange Nifty declined by 34.75 points, or 0.59 percent, to 5,855.00.

Brokers said sentiment dampened further after international rating agencies, Moody's and Fitch, on Monday downgraded the debt rating of the country's top three public sector banks: State Bank of India, Bank of Baroda and Punjab National bank, citing worsening credit quality and recapitalization concerns.

Besides, a weak trend in the Asian region also triggered selling on the domestic bourses, they said. The BSE banking index suffered the most by falling 1.48 percent to 11,458.48 with stocks of SBI declining by 2.75 per cent, Bank of Baroda by 2.35 percent, Punjab National Bank by 2.59 percent, ICICI Bank by 0.64 percent, HDFC Bank by 1.03 percent and Yes Bank by 1.73 percent.

Meanwhile, in Asia, Hong Kong's Hang Seng index down by 1.08 percent, while Japan's Nikkei fell 0.70 percent in morning trade. The US Dow Jones Industrial Average ended 0.32 percent lower in Monday’s trade.


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