Benchmark indices ended the day lower as banking stocks fell sharply, following worries over a rise in non performing assets.
The Sensex ended the day with losses of 213 points, while the Nifty fell 62 points in trade. The biggest losers in trade were the larger private sector banking stocks like ICICI Bank and Axis Bank. In fact, the latter crashed by a huge 7 per cent in trade as analysts worried over non performing assets. ICICI Bank also fell and ended the day lower by more than 3 per cent, while State Bank of India lost 2 per cent.
Shares in Amara Raja Batteries dropped 6 per cent as results of the company lagged estimates. SKS Microfinance jumped in trade after the company received funding from the Mudra Bank.
Lupin which reported numbers on Tuesday that lagged estimates, fell for the second day in a row. The stock was down almost 2 per cent in trade, after losing 5 per cent on Tuesday.
IDBI Bank shares rallied sharply after reports of a privatization of the bank. However, the shares which had rallied almost 3 per cent at one stage, ended only the day lower on profit booking in banking stocks.
Meanwhile, the rupee was trading marginally weak at 65.05 to the US dollar.