Benchmark indices ended the day flat on the first day of trade for 2017, after seeing bouts of volatility. In fact, the markets were trading lower for most of the day, however, a sharp recovery in the European indices prompted a sharp recovery during the day.
The banking major fell a huge 2 per cent, after it lowered its benchmark lending rates by a huge 0.90 per cent. This also prompted banks like Punjab National Bank and Dena Bank to cut lending rates. However, shares in Punjab National Bank ended the day almost flat.
Shares in ICICI Bank also fell, following the move by State Bank of India to cut lending rates.
The shares of India's largest private sector lender dropped 1 per cent in trade. Maruti shares gained despite a fall in sales at the company.
Among non index stocks IL&FS Engineering jumped as 6 per cent, after the company got a road contract in Karnataka worth Rs 242.56 crore. Shares in Merck fell after the company got a demand notice worth around Rs 26 crore from National Pharmaceutical Pricing Authority.
Meanwhile, European markets were trading with gains, recovering from early losses. The German DAX, French CAC and the UK's FTSE were all higher in trade.