The BSE Sensex turned lower in the last hour of trade on account of sharp selloff in banking stocks. The Sensex fell 40 points, while the Nifty traded below the key 6,150 levels.
The Bank Nifty was down nearly 1 per cent led by ICICI Bank, which slipped over 2 per cent after reporting higher-than-expected rise in non-performing assets in the December quarter.
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.
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.
Pradip Hotchandani of Prudent Broking Services said across the board weakness can be seen in banking stocks, so investors short the Bank Nifty.
The index of PSU banks fell as much 1.5 per cent. Bank of Baroda was down 1.8 per cent, while SBI slipped 1.34 per cent. PNB traded 1.6 per cent lower.
Metal stocks also came under selling pressure over concerns of slower growth in China. Sesa Sterlite fell 3 per cent, while Tata Steel traded 2.7 per cent lower.
Among the gainers, Maruti rebounded over 6.7 per cent, recovering from the sharp selloff yesterday.
The Bank Nifty was down nearly 1 per cent led by ICICI Bank, which slipped over 2 per cent after reporting higher-than-expected rise in non-performing assets in the December quarter.
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.
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.
Pradip Hotchandani of Prudent Broking Services said across the board weakness can be seen in banking stocks, so investors short the Bank Nifty.
The index of PSU banks fell as much 1.5 per cent. Bank of Baroda was down 1.8 per cent, while SBI slipped 1.34 per cent. PNB traded 1.6 per cent lower.
Metal stocks also came under selling pressure over concerns of slower growth in China. Sesa Sterlite fell 3 per cent, while Tata Steel traded 2.7 per cent lower.
Among the gainers, Maruti rebounded over 6.7 per cent, recovering from the sharp selloff yesterday.
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