close

News WrapGet Handpicked Stories from our editors directly to your mailbox

Sensex, Nifty retreat as banks fall; Indiabulls dips 9%

File photo of Bombay Stock Exchange (BSE) building in Mumbai. Photograph:( Reuters )

Reuters Bengaluru, Karnataka Oct 10, 2019, 11.00 AM (IST)

A slide in banking stocks dragged Indian shares lower on Thursday following a sharp rise in the previous session, as markets awaited earnings reports from major IT services companies.

Shares in Indiabulls Housing Finance Ltd fell 9 per cent after the central bank blocked its proposed merger with Lakshmi Vilas Bank Ltd.

It was the latest in a series of negative headlines surrounding the banking industry, which is saddled with a mountain of soured debt.

The broader NSE Nifty was down 0.35 per cent at 11,273.60 by 0437 GMT, while the benchmark BSE Sensex was weaker by 0.31 per cent at 38,060.12.

All 12 stocks on the Nifty bank index were in the red, and RBL Bank Ltd was the biggest decliner with a drop of 4.1 per cent.

IT services firm Tata Consultancy Services Ltd (TCS) will report its financial results later in the day, marking the start of the September-quarter earnings season. Industry peer

Infosys Ltd is scheduled to report its results on Friday. Shares in both TCS and Infosys were each up roughly 1 per cent.

Meanwhile, telecom stocks rose after Reliance Jio said it would start charging customers for calls made through its network to other operators.

The move could signal a rise in industry prices and revenues if more operators follow Jio's lead, analysts say.

Jio's rivals Bharti Airtel Ltd and Vodafone Idea Ltd gained 3.8 per cent and 4.3 per cent, respectively. Shares in Grasim Industries Ltd, the top shareholder in Vodafone Idea, rose 4.5 per cent.
 

Story highlights

The broader NSE Nifty was down 0.35 per cent at 11,273.60, while the benchmark BSE Sensex was weaker by 0.31 per cent at 38,060.12.