The Chinese data spooked investors who were nervous after minutes of the U.S. Fed’s January gathering released yesterday showed several policy makers were in favour of stimulus cuts.

“Global markets were showing selling pressure, post weaker manufacturing data in China and also because of U.S. Federal Reserve indicating continuation of tapering of stimulus, This, along with profit booking after recent rally, led to selling pressure in India too,” said Rakesh Goyal, Senior Vice President, Bonanza Portfolio.

Sectoraly, the BSE Banking sector index suffered the most by losing 1.63 per cent as SBI plunged 1.80 per cent, ICICI Bank by 2.15 per cent and HDFC Bank by 0.99 per cent.

The metal sector index dropped by 1.01 per cent after Tata Steel lost 1.80 per cent, Hindalco 1.52 per cent and Sesa Sterlite by 0.48 per cent. Overall, 10 of the 12 sectoral indices closed down. Capital goods and power barometers were the two which ended higher.

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