September 3, 2019 / 10:37 AM / 5 months ago

Indian shares slump 2% after dismal growth data

BENGALURU, Sept 3 (Reuters) - Indian shares plunged 2% on Tuesday in a broad-based selloff, as investors fretted over data that showed the economy grew at its weakest pace in over six years.

The broader NSE index ended down 2.04% at 10,797.9, its biggest drop since July 8, while the benchmark BSE index closed 2.06% lower at 36,562.91 in its worst day since Oct.11.

Asia’s third-largest economy expanded just 5% year-on-year in the three months ended June, official data showed on Friday, far below the 5.7% growth forecast in a Reuters poll.

Banks were among the worst hit on the first day of September, with the Nifty PSU Bank index sliding 4.9% to its lowest close since May 2016.

Punjab National Bank, United Bank of India and Indian Bank sank 8.5%-11.7% after the government announced a series of mergers involving 10 public sector banks.

Private-sector lender ICICI Bank Ltd fell 4.3%, its sharpest drop since mid-May, while index heavyweight Reliance Industries Ltd dropped 3.4% to a near four-week closing low.

For the mid-day report, click (Reporting by Chris Thomas in Bengaluru; Editing by Subhranshu Sahu)

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