The banking stocks were under pressure after the Reserve Bank of India revised the new stressed assets framework asking banks to resolve defaults within 180 days with Bank of India, Syndicate Bank, Union Bank of India, IDBI Bank and OBC trading weak in the morning trade.
It was a flat trade from the Indian indices with the Sensex shedding over 26 points in early trade while the Nifty was down 4 points at 10,533.
Nifty realty was the outperforming sector which jumped 1.17 percent led by stocks like Indiabulls Real Estate, Unitech, Delta Corp. Oberoi Realty and Sobha.
The Nifty PSU banking index was down close to 2 percent with PNB falling over 4 percent after the bank detected some fraudulent transactions Worth USD 1,771.7 million in its Mumbai branch.
The banking stocks were under pressure after the Reserve Bank of India (RBI) has revised the new stressed assets framework asking banks to resolve defaults within 180 days.
Bank of India, Syndicate Bank, Union Bank of India, IDBI Bank and OBC were some of the banks which were weak in the morning trade. PSU banking major State Bank of India was also down close to 2 percent.
From the Nifty, the stocks that gained the most were Bharti Airtel which jumped 2.4 percent followed by HCL Tech, Indiabulls Housing Finance, Vedanta and Tech Mahindra, each gaining over 1 percent.
The top Nifty losers included Bharti Infratel and Sun Pharma, each shedding over 2 percent while Power Grid, Axis Bank and State Bank of India were the other losers.
The most active stocks included SBI which shed 1.8 percent followed by HDFC which added 0.6 percent. Reliance Industries (0.9 percent), PNB and Sun Pharma were the other active stocks.
From the BSE, Bombay Burmah jumped over 6 percent followed by Mahindra Holidays which added 6 percent while NALCO, Amara Raja Batteries were some of the top Sensex gainers.
The stocks that hit new 52-week high on BSE included RComm which jumped 7 percent followed by Suntek,Vakrangee, Religare and DHFL.
Bharat Forge, NELCO and Finolex Cables were some of the few that that hit new 52-week high.
The market breadth was in favour of the advances with 1077 stocks advancing in while 513 stocks declined and 420 remained unchanged. On the other hand, 1450 stocks advanced on BSE with 754 stocks declining and 98 remained unchanged.
Macquarie has maintained an underperform rating on Bank of India and has cut target to Rs 87 from Rs 98. It is of the view that the quarterly loss is purely from ageing provisions, hard divergences and investment provisions. It expects some provision reversals against NCLT accounts ahead.
Deutsche Bank has maintained a sell on Bank of India and has cut target to Rs 110 from Rs 120. It expects revenue drivers to remain weak and RoEs at 3-5 percent over FY19 with treasury contribution likely to fade away.Disclaimer: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd