Bank Nifty declined over 1 percent in intraday trade on Friday, dragged by a sharp fall in Axis Bank shares after the lender's June quarter results missed market expectations. Broader selling was also seen across insurance and NBFC stocks.
Shares of Axis Bank slipped as much as 6.36 percent to Rs 1,086 on the NSE after the private lender reported a 3 percent year-on-year drop in its consolidated net profit to Rs 6,243.72 crore for the first quarter of FY26. The decline was attributed to changes in norms related to non-performing assets and loan upgrade policies.
The stock, which opened lower by 6.02 percent, pared some losses by midday to trade at Rs 1,114.20, down 3.93 percent. Axis Bank shares have now fallen for two straight sessions.
"Axis Bank’s results came below market expectations, leading to pressure on the stock. Its GDR also dropped 4.8 percent to USD 64.30 on Thursday, reflecting concerns over asset quality," said Devarsh Vakil, Head of Prime Research, HDFC Securities.
Axis Bank Q1 results: Net profit declines 4% to Rs 5,806 crore, NII marginally up
The weak earnings triggered broader selling in the banking sector, pulling the Nifty Bank index down over 1 percent in intraday trade—its second consecutive session of losses. Eleven out of the twelve Nifty Bank constituents were in the red, with only IndusInd Bank trading higher, up 1 percent.
Among other laggards in the banking space were Kotak Mahindra Bank, State Bank of India, HDFC Bank, ICICI Bank, and IDFC First Bank, which declined up to 1.5 percent.
The weakness also extended to insurance and NBFC stocks. Bajaj Finserv, LIC Housing Finance, ICICI Prudential Life Insurance, HDFC Life, Shriram Finance, and SBI Life fell up to 2 percent.
The Nifty Financial Services index was down nearly 1 percent, while the Nifty Private Bank index slipped 1.23 percent, with 8 of its 10 constituents trading in the red.
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