Shares of Axis Bank fell 1.32% to close at Rs 717.60 ahead of the quarterly results, due to be announced on Wednesday.
Indian markets ended Tuesday in the red for the second consecutive session after disappointing numbers reported by some companies and the International Monetary Fund slashed India’s growth estimate for 2019-20 to 4.8%. The benchmark Sensex tumbled 205.10 points to close at 41,323.81 points led by losses in auto, banking and metal stocks. The broader Nifty50 declined by 0.45% to 12,169.85 points.
Tata Steel, Mahindra & Mahindra, Power Grid Corp and Asian Paints were the top losers on the Sensex. Shares of Tata Steel fell by 3.01% to close at Rs 475.90 apiece, while Mahindra & Mahindra fell 2.42% on Tuesday. Index heavyweights HDFC Bank, ITC, ICICI Bank and Infosys contributed more than 100 points to the Sensex’ fall on Tuesday.
Explaining the reason behind the fall, Vinod Nair, head of research at Geojit Financial Services, said subdued results played a part in the decline.
“Investors are profit-booking in mid and smallcaps post a decent pre-Budget rally. Some subdued results in Q3FY20 compared to expectations this month has triggered a consolidation in the market,” he added.
The BSE Midcap index was down by 0.21% and BSE Smallcap traded flat. Bank Nifty slipped 0.43% after being dragged by Axis Bank and HDFC Bank. Shares of Axis Bank fell 1.32% to close at Rs 717.60 ahead of the quarterly results, due to be announced on Wednesday. Additionally, shares of Federal Bank rose by 0.91% after the bank reported its results on Monday showed an improvement in the bank’s asset quality.
“In an environment where we have seen several midcap banks showing deteriorating asset quality, Federal Bank has emerged stronger,” Kotak Institutional Equities said in a note.
The Indian markets were also impacted by the Asian markets which had a tepid performance on Tuesday with bourses in Hong Kong, South Korea, China and Taiwan ending the day in red. Hang Seng the benchmark index of Hong Kong was down by 2.8%.