INDIAN BENCHMARKS: SENSEX SLIPS 205 POINTS AS PRIVATE BANKS EARNING WEIGH, NIFTY 50 ENDS AT 8510
Disappointing earnings from banking giant HDFC Bank -0.30 % and Kotak Mahindra Bank weighed heavy on Dalal Street on Thursday. HDFC Bank, the country's second largest private lender, posted 20 per cent jump in net profit but provisions and bad loans remained higher denting investors' expectations of recovery in balance sheet. Kotak Mahindra Bank-2.71 % reported a four-fold jump in net profit, but the numbers were below-par growth in terms of net interest income which dented sentiments on the Street.
Unsurprising results from the two giant private banks amidst low expectations caused shares of other private sector banks to drag the benchmark equity indices.
The S&P BSE Sensex closed 205 points, or 0.74 per cent, lower at 27,710 while the 50-share NSE Nifty50 slipped below 8,550 to end the day at 8,510, down 0.65 per cent or 56 points.
HEADLINES OF THE DAY
HDFC Bank Q1FY17 first cut: Business performance remains healthy
Kotak Mah Bk Q1: Standalone Net Profit at Rs742 Cr Vs Rs190 Cr (YoY)
Ashok Leyland Q1FY17: Operating performance ahead of estimates
The crucial resistance for Nifty spot is now seen at 8605 and above this 8657. Support for the immediate term is now placed at 8485 and next support will be 8430.