Nifty, Sensex fall as telecom exposure weighs on banks
Bombay Stock Exchange
Indian shares ticked lower on Monday, dragged down by banking stocks exposed to telecom operators after the government ordered mobile carriers to immediately pay billions of dollars in dues.
The broader NSE Nifty 50 index was down 0.23 per centat 12,086.15 by 0356 GMT, while the benchmark S&P BSESensexfell 0.17per centto 41,186.70.
The banking sector dominated the losses, with the Nifty bank indexfalling 0.5 per cent. The Nifty PSU bank indexdropped 1.4per centand Nifty private bank indexslid 0.4 per cent.
Number 2 telco Bharti Airtelfell as much as 1.5per centas the government on Friday after market close ordered mobile carriers to immediately pay 920 billion Indian rupees ($12.88 billion) in overdue levies and interest.
The move came after the country's top court threatened the companies and officials with contempt proceedings for failing to implement an earlier ruling.
Vodafone Idea'sshares were up nearly 12per centon Monday after dropping 24per centon Friday.
Vodafone Idea is saddled with about $3.9 billion in overdue payments and said last week there was still material uncertainty about its ability to continue as a going concern.
Indian banks are burdened with nearly $140 billion of bad loans and face another huge hit if Vodafone Idea is forced into bankruptcy.
Banks in India are owed roughly 300 billion rupees by Vodafone Idea, according to a Macquarie report from last year.
Punjab National Bankfell 1.9 per cent, Bank of Indiaslipped 2 per cent, while State Bank of Indiaedged down 0.8 per cent.
Shares of India's top oil explorer, Oil and Natural Gas Corp, fell as much as 3.9 per centafter it reported a near 50per centdrop-in Dec-qtr profit on Friday.