Indian markets fell on Friday marking its fourth straight week of red. Although the overall dominant factor which weighed the most was the sharp fall as prices of IndusInd Bank shares crash. This blow saw a heavy fall across private lenders, badly disappointing quarterly numbers for IndusInd Bank and NTPC seemed to wilt investor sentiment, as the NSE Nifty 50 dropped 0.5% to 24,275.5 as on 9:56 am IST. The BSE Sensex declined 0.38% to 79,759.04.
Shares of IndusInd Bank crashed after the bank gave a surprising, below-estimate drop in profit for the September quarter. Microfinance loans prove tough for the bank, which again resulted in increased provisions and strained asset quality, making pressure on the broader market as both Nifty 50 and Sensex indices fell to new lows this week. Now, both are about 7% off the highs reached Sept. 27 and set to drop the most for a month since March 2020.
This week, foreign outflows have remained a steady support for Indian shares. Investors withdrew funds for 19 straight sessions. Policies in China, be it in the name of stimulus measures or merely more prudent valuations, have already written the script of foreign investments leaving India.
IndusInd Bank shares crash: Market analyst Siddhartha says “it further dampens sentiments”
For instance, market analysts like Siddhartha Khemka of Motilal Oswal Financial Services note how crashingly further IndusInd Bank shares have doused sentiment that had already precarious quarterlies sitting on the table.
While NTPC’s 2.5% slump post-profit decrease, which was reported lower than analysts’ estimates, also played a part, other industry groups were mixed. Small and mid-cap stocks reflected on the most part local sentiments and were down about 1.2% each thereby adding weight to the overall slump.
Were there some positives in Indian market?
Bright positives were scarce but ITC was one of them that shot up by 4%, thereby being the best performer on Nifty 50. The company’s profits had been missed but analysts spoke in positives as they discussed its sales along with volume growth.
But whereas Axis Bank gained 2% after Reserve Bank of India cleared the reappointment of its chief executive, Amitabh Chaudhry. Furthermore, it offered some stability in a day that saw otherwise broader market dips, IndusInd Bank shares crashing were the biggest factor driving Friday’s losses.
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