The BSE Sensex declined for a fourth consecutive session tracking a selloff in banking and metal stocks. The Sensex closed 36 points or 0.18 per cent lower at 20,647, while the Nifty ended at 6,120, down 6 points. This is the lowest close for the Nifty in two months.
Volumes on the BSE index sank to the lowest in four days, with caution also prevailing ahead of the conclusion of the United States Federal Reserve's policy meeting later in the day.
The Fed is widely expected to continue reducing its monthly bond purchases by $10 billion a month.
"I think the decision on tapering is crucial for global markets including India. $5-10 billion is okay but anything beyond that would be a shock for us," said Sudip Bandyopadhyay, managing director at Destimoney Securities Pvt Ltd.
Last hour selling pressure was led by private lender ICICI Bank, which closed 1.7 per cent lower after reporting higher-than-expected rise in non-performing loans in the December quarter. The bank's December-quarter net NPA rose to 0.94 per cent versus 0.76 per cent a year ago.
Dinesh Shukla of Sharekhan said restructured loans in the December quarter were relatively high at Rs. 2,000 crore. This has raised some concerns on asset quality, he added.
India's largest private lender's net profit grew 13 per cent year-on-year, which is the slowest growth in four years. ICICI Bank's profit growth was sharply lower as compared to Yes Bank's 21 per cent, HDFC Bank's 25 per cent and IndusInd Bank's 30 per cent.
The Bank Nifty declined 0.66 per cent and underperformed the broader markets. Pradip Hotchandani of Prudent Broking Services said across the board weakness can be seen in banking stocks, so investors short the Bank Nifty.
Big state-run banks such as State Bank of India and Punjab National Bank, which will report numbers in the coming days, are likely to report sharper deterioration in assets, traders said.
The index of PSU banks fell as much 1.6 per cent. Bank of Baroda fell 2 per cent, while SBI closed 1.42 per cent lower. PNB, which reports its numbers on Friday, ended 1.3 per cent lower.
Sesa Sterlite fell 3.2 per cent after the company reported December-quarter net profit of Rs. 1,868 crore, which lagged some analysts expectations.
Bharti Airtel lost 1.3 per cent, having earlier risen as much as 2.86 per cent, after October-December voice minutes on its India mobile network grew 1.47 per cent quarter-on-quarter, lagging some analysts' expectations.
Among the gainers, Maruti rebounded over 6.9 per cent, recovering from the sharp selloff yesterday. Havells India rose 3.3 per cent after the company said its December-quarter net profit rose 28.3 per cent to Rs. 121 crore.
Volumes on the BSE index sank to the lowest in four days, with caution also prevailing ahead of the conclusion of the United States Federal Reserve's policy meeting later in the day.
The Fed is widely expected to continue reducing its monthly bond purchases by $10 billion a month.
"I think the decision on tapering is crucial for global markets including India. $5-10 billion is okay but anything beyond that would be a shock for us," said Sudip Bandyopadhyay, managing director at Destimoney Securities Pvt Ltd.
Last hour selling pressure was led by private lender ICICI Bank, which closed 1.7 per cent lower after reporting higher-than-expected rise in non-performing loans in the December quarter. The bank's December-quarter net NPA rose to 0.94 per cent versus 0.76 per cent a year ago.
Dinesh Shukla of Sharekhan said restructured loans in the December quarter were relatively high at Rs. 2,000 crore. This has raised some concerns on asset quality, he added.
India's largest private lender's net profit grew 13 per cent year-on-year, which is the slowest growth in four years. ICICI Bank's profit growth was sharply lower as compared to Yes Bank's 21 per cent, HDFC Bank's 25 per cent and IndusInd Bank's 30 per cent.
The Bank Nifty declined 0.66 per cent and underperformed the broader markets. Pradip Hotchandani of Prudent Broking Services said across the board weakness can be seen in banking stocks, so investors short the Bank Nifty.
Big state-run banks such as State Bank of India and Punjab National Bank, which will report numbers in the coming days, are likely to report sharper deterioration in assets, traders said.
The index of PSU banks fell as much 1.6 per cent. Bank of Baroda fell 2 per cent, while SBI closed 1.42 per cent lower. PNB, which reports its numbers on Friday, ended 1.3 per cent lower.
Sesa Sterlite fell 3.2 per cent after the company reported December-quarter net profit of Rs. 1,868 crore, which lagged some analysts expectations.
Bharti Airtel lost 1.3 per cent, having earlier risen as much as 2.86 per cent, after October-December voice minutes on its India mobile network grew 1.47 per cent quarter-on-quarter, lagging some analysts' expectations.
Among the gainers, Maruti rebounded over 6.9 per cent, recovering from the sharp selloff yesterday. Havells India rose 3.3 per cent after the company said its December-quarter net profit rose 28.3 per cent to Rs. 121 crore.
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