Markets slide again; Banking stocks down on NPA concerns

Published: Wednesday, May 9, 2012, 15:47 [IST]

Indices ended the day lower once again, led by sharp fall in banking stocks on fresh concerns of rising non performing assets (NPAs). The BSE Sensex ended the day lower by 66 points at 16479 points, while the Nifty lost 25 points to end lower at 4974 points.

Today's drop comes despite GAAR postponement and some positive announcements that came through the amendments to the Finance Bill initiated by Pranab Mukherjee.

Banking stocks continued to drift lower on NPA worries with State Bank of India, ICICI Bank and UCO Bank dropping sharply. Other shares that ended sharply lower today were Jaiprakash Associates, DLF and Kotak Mahindra.

Among the few shares that gained in trade today were ITC, Ranbaxy Laboratories, TCS and Bajaj Auto. Shares in Asia and Europe were also trading lower on fears over Greece's austerity measures. Shares of Reliance Industries dropped 1.6%, as the company lowered its gas production from D6.

Markets are expected to remain weak on global weakness and mounting worries over India's weakening fundamentals. A falling rupee is expected to compound woes further.

GoodReturns.in

Story first published: Wednesday, May 9, 2012, 15:47 [IST]