Stocks of smaller private sector players are falling very rapidly, as quarterly numbers failed to meet expectations.
On Thursday, Federal Bank reported a poor set of quarterly numbers that lagged estimates.
Federal Bank shares fell after its March quarter net profit dropped an annual 44 per cent due to a sharp rise in bad loan provisioning. Federal Bank recognised Rs 872 crore of slippage in January-March to comply with the requirements as stipulated by the country's central bank.
Karnataka Bank is now slated to declare its results on May 15 and markets would await to see, if non performing assets of these smaller private bank players surge.
Some of these stocks have already fallen significantly from 52-week highs. Other private sector players like Karur Vysya Bank's quarterly numbers are awaited. Analysts would be keen to watch for provisionings after the numbers.