A traffic signal stands illuminated next to the Bombay Stock Exchange (BSE) building in Mumbai. (Photographer: Dhiraj Singh/Bloomberg)

Banks Drag Sensex, Nifty Lower; PNB Slumps Most In Over Two Years

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Closing Bell

Indian equity benchmarks edged lower dragged by banks as the revised bad loan resolution norms by Reserve Bank of India would lead to higher provisioning for bad loans which will hurt profitability of the banks.

The S&P BSE Sensex fell 0.4 percent or 144 points to 34,156 and the NSE Nifty 50 Index declined 0.37 percent or 39 points to 10,500.90.

Thirteen out of 19 sector gauges compiled by BSE ended lower dragged down by the S&P BSE Bankex Index’s 1.6 percent drop. On the flipside, the S&P BSE Energy Index was the top sectoral gainers, up 0.8 percent.

Among the individual shares, Punjab National Bank fell 10.39 percent, the most since Aug. 2015, to Rs 144.85 after it detected fraudulent or unauthorised transactions of approximately Rs 11,000 crore at one of its branches in Mumbai.

Banks Drag Sensex, Nifty Lower; PNB Slumps Most In Over Two Years

Broader Markets Erase Intraday Gains

Selling pressure in last hour of trade was broad-based as the mid-cap and small-cap shares gave up their intraday gains with respective indices trading in the red.

Banks Drag Sensex, Nifty Lower; PNB Slumps Most In Over Two Years

Fab Four Stocks Of The Day

NCC: The Hyderabad-based construction company rose 7.13 percent, the most in three months, to Rs 126.95 after it reported December quarter earnings.

Key earnings highlights:

  • Revenue down 2.8 percent at Rs 1,851 crore versus Rs 1,903.6 crore (YoY)
  • Net Profit up 72.4 percent at Rs 100 crore versus Rs 58 crore (YoY)
  • Exceptional loss of Rs 30 crore in the current quarter
  • EBITDA up 46.6 percent at Rs 255.4 crore versus Rs 174.2 crore (YoY)
  • Margin at 13.8 percent versus 9.2 percent (YoY)

KRBL: Shares of the Delhi-based rice producer rose as much as 7.7 percent, the most in over two months, to Rs 646.65 after Pabrai Investment bought 64.18 lakh shares (2.7 percent equity) in the company at Rs 594. per share.

Binani Industries: Shares of the Mumbai-based cement maker rose by their maximum intraday limit of 5.8 percent to Rs 113.55 after Billionaire Kumar Mangalam Birla and an investor group led by Dalmia Bharat are emerging as the lead bidders for Binani Cement Ltd., which is being sold under the country’s insolvency process, Bloomberg reported citing people with knowledge of the matter.

Can Fin Homes: The Bangalore-based mortgage lender rose for fifth straight day, rising as much as 6.66 percent, to Rs 525.95.

Steel Strips Wheels Q3 Net Profit Rises 44%

Shares of the Chandigarh-based steel wheel rim maker were trading 5 percent lower at Rs 1,050 after the company reported its December quarter earnings.

Key earnings highlights:

Net profit up 44 percent at Rs 18.12 crore versus Rs 12.62 crore (YoY)

Revenue up 7.8 percent at Rs 397.4 crore versus Rs 368.5 crore (YoY)

Punjab National Bank Extends Losses, Nifty PSU Bank Plunges Over 4%

Shares of the Delhi-based state-run lender extended losses, falling as much as 10 percent, to Rs 145.80 after the bank detected fraudulent or unauthorized transactions worth approximately Rs 11,000 crore at one of its branch in Mumbai.

Losses in Punjab National Bank dragged the Nifty PSU Bank index which fell as much as 4.8 percent or 166 points to 3,307.

Banks Drag Sensex, Nifty Lower; PNB Slumps Most In Over Two Years