It was a bad start to the August series with the Nifty falling for the third consecutive session Friday, weighed down by PSU banks on rising bad loans and metals stocks.
The BSE Sensex was down 56.57 points to close at 19748.19, and the Nifty fell 21.30 points to end at 5886.20, but the cut was deeper in broader markets. The BSE Midcap and Smallcap indices were down nearly one percent.
Disappointing earnings continued to hurt the market sentiment with the asset quality concerns impacting public sector lenders and reduction in discretionary spending pinching FMCG companies.
The BSE Metal Index crashed 3.5 percent. Sterlite Industries fell 4.6 percent post June quarter earnings while Coal India and Hindalco were down 4 percent and 7.6 percent.
Among others, Tata Motors dropped over 3 percent while Sun Pharma and Hero MotoCorp gained 2 percent. Ambuja Cements also gained 4 percent after seeing 10.5 percent fall in previous session due to Holcim deal.
Dish TV shares lost more than 8 percent after it reported higher-than-expected loss in first quarter net profit at Rs 30.4 crore as against loss of Rs 32.3 crore in a year ago period and analysts’ forecast of Rs 27 crore, impacted by higher market costs.
SKS Microfinance , Tata Coffee , Biocon and Sterlite Technologies rallied 5-7 percent after strong earnings in April-June quarter.
public sector banks dragged the BSE Bankex 1.4 percent down after weak earnings from Punjab National Bank (down 5 percent), Bank of India (down 4.5 percent) and State Bank of Travancore (fall 0.5 percent).
Deteriorating asset quality has been the major concern for PSU banks. Punjab National Bank ( PNB) reported a muted rise of 2.3 percent year-on-year in its first quarter net profit at Rs 1,275 crore, but its gross NPAs shot up 51 percent to Rs 15,091 crore while net NPAs ballooned 84 percent to Rs 9,060 crore .
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