IT and Banking Stock Drags the Markets Lower

The markets slipped over 2 per cent in the wee hours of trade following some hefty selling in front-line IT and banking shares as concerns of global growth slowing down weighed on investor sentiment. The Nifty opened flat, but wilted under selling pressure soon after. The index cracked the 5,000-mark, and touched a low of 4,932 during the last half an hour of trade. The Nifty slipped 112 points, at 4,944 and the Sensex declined 371 points, at 16,469. All the sectoral indices closed the day on a negative note. The IT and Banking indices were the main draggers with a loss of more than three percentage points. On the global front, European stocks slid, dragging the Stoxx  Europe 600 Index from a two-week high, as two Federal Reserve officials said the central bank shouldn’t act to protect equity investors. U.S. index futures and Asian shares retreated.