A sharp drop in banking shares dragged Indian markets lower today, following a sharp rise in the previous session, as markets awaited earnings reports from major IT services companies. Private lender IndusInd Bank Ltd today reported a big jump in its September-quarter net profit from a year ago due to higher net interest and other income. Net profit for the quarter stood at ?1,383.37 crore, up 50.33%, from ?920.25 crore a year ago. However, on a quarter-on-quarter basis, net profit declined 3.4%. IndusInd Bank shares slumped 6%.
Shares in Indiabulls Housing Finance Ltd slumped 19.5% after the central bank blocked its proposed merger with Lakshmi Vilas Bank Ltd.
It was the latest in a series of negative headlines surrounding the banking industry, which is saddled with a mountain of soured debt.
The Sensex ended 297 points lower at 37,880 while Nifty settled at 11,234, down 0.70%.
IT services firm TCS will report its financial results later in the day. Industry peer Infosys Ltd is scheduled to report its results on Friday. TCS shares fell 1% while Infosys declined 0.25%.
Meanwhile, telecom stocks rose after Reliance Jio said it would start charging customers for calls made through its network to other operators.
The move could signal a rise in industry prices and revenues if more operators follow Jio’s lead, analysts say.
Jio’s rivals Bharti Airtel Ltd and Vodafone Idea Ltd gained 4% and 5% respectively. Market heavyweight RIL rose 2.6%. (With Agency Inputs)