Bears return! Indices tumble ahead of September expiry

After solid rally in past few days, the Indian stock market witnessed huge selling pressure on Wednesday as bears returned amid weaker sentiments across the markets. The Indian benchmark indices started the session with a negative note, following weak trade in Asian markets. Globally, sentiments were dampened after US lawmakers, on September 24, called for an impeachment inquiry into President Donald Trump, raising fears of political uncertainty in the world's largest economy.

Moreover, investors across the globe were concerned about US-China trade talks (to be held in first week of October) after US President Donald Trump took a harsh tone on China's trade practices at the United Nations General Assembly, saying, he would not accept a 'bad deal' with Beijing.

Back home, indices remained in red as banks and auto stocks were under huge selling pressure. Bank stocks were down on fresh concerns in the sector after the fresh irregularities exposed in lending by Punjab and Maharashtra Cooperative Bank (PMC Bank). Meanwhile, the auto stocks were under pressure after Maruti Suzuki announced price cut of Rs. 5000 in select models.

At the end of the session, BSE Sensex was down 503.62 points or 1.29 percent at 38,593.52, and the Nifty fell 148 points or 1.28 percent to 11,440.20.

Broader markets too witnessed sell-offs as Nifty Midcap and Smallcap indices slipped 2 percent each. All the sectoral indices, except IT, ended with losses.