Poor results, weak cues pull Sensex down

MUMBAI: A disappointing quarterly performance by leading corporates and weak Asian markets pulled down Indian benchmark indices by 0.9% each on Friday.

The Sensex ended 162.58 points down at 18683.7 while the Nifty slipped 52.5 points to close at 5686.25, or below the psychological mark of 5700, on poor quarterly performance by the State Bank of India, Tata Steel and ONGC.

An almost 1% fall in other Asian benchmarks such as Nikkei and Hang Seng also weighed on the sentiment. More than six shares fell for every stock that rose on the 30-share Sensex.

Shares like SBI, Tata Steel and ONGC fell over 3% each, with bad loans of the country’s largest bank constraining earnings growth.

SBI’s net profit grew 30% to Rs3,658 crore, the smallest rise in the fiscal year to date, as bad loans jumped by 45% to Rs492 crore from the year-ago quarter. Tata Steel and ONGC saw net profit fall during the second-quarter.

“The markets did not expect SBI’s bad debt to rise to the extent it did,” said Sudeep Bandyopadhyay, MD & CEO, Destimoney Securities.