9.55 a.m.: Brokerages have cut their earnings estimates for Axis Bank post its weak Q3 earnings. Macquarie has reduced its earnings estimates by 30-40 per cent, CLSA by 14-18 per cent, Credit Suisse by 7 per cent and UBS by 8-7 per cent.
9.45 a.m.: Investors continued to sell Axis Bank shares on asset quality concern. Axis Bank’s gross non-performing assets (GNPA) as a percentage of total advances rose to 5.22 per cent compared to 4.17 per cent in the September quarter. Meanwhile, it’s net non-performing assets, which is GNPA minus provisions, rose 16 basis points sequentially to 2.18 per cent of advances. Axis Bank shares were down 5.86 per cent at Rs. 455.45.
9.20 am.: The BSE Sensex fell over 100 points led by losses in banking and IT stock, while the Nifty50 index breached the 8,400 mark. Sensex made a low of 27,196.2 and the Nifty fell as much as 38 points to 8,397.05.
Losses in banking shares were led by Axis Bank, which plunged over 6 per cent to Rs. 452.65 on weak earnings for the October-December quarter. The private sector lender reported 73 per cent decline in its net profit at Rs. 580 crore compared to Rs. 2,175 crore year ago, as bad loans jumped resulting in over 400 per cent annual jump in its provisions to Rs. 3,796 crore. ICICI Bank and Bank of Baroda were the other banking losers in the Nifty50 index.
Other than banks, IT stocks also witnessed selling. HCL, Infosys, Tech Mahindra fell between 0.5-0.9 per cent each.
Meanwhile, Asian shares fell on Friday as caution prevailed in financial markets ahead of US President-elect Donald Trump’s inauguration, even as China’s fourth-quarter economic growth beat expectations and Federal Reserve Chair Janet Yellen took a less hawkish policy stance.
9.00 am.: Rupee opens higher at 68.05 per dollar against Thursday’s close of 68.12