April 30, 2019 / 7:01 AM / 6 months ago

Indian shares dragged by plunging Yes Bank; IT stocks gain

* NSE index down 0.5 pct, BSE index down 0.4 pct

* State-run banks among biggest losers

* Hero MotoCorp falls on weak qtrly results

By Krishna V Kurup

April 30 (Reuters) - Indian shares declined on Tuesday, dragged by Yes Bank Ltd after the private-sector lender posted its first quarterly loss due to a surge in provisions for bad loans.

The broader NSE index was down 0.46 percent at 11,700.60 as of 0647 GMT, while the benchmark BSE index fell 0.4 percent to 38,895.66.

Yes Bank’s shares fell as much as 30 percent in their worst day since September 21, 2018. The stock hit its lowest level since December 11, 2018 in heavy trading, with more than 147 million Yes shares traded, compared to their 30-day average of 35.8 million shares.

The lender posted a loss of 15.07 billion rupees ($216 million) for the quarter ended March 31, while analysts were expecting a profit of 10.70 billion rupees. Provisions and contingencies surged to 36.62 billion rupees from 4 billion rupees a year ago.

Financial companies accounted for most of the weakness on the NSE index. State-run lenders were battered, with Nifty PSU Bank index falling as much as 4.3 percent, its biggest intraday fall since Oct 11.

Housing finance firms also lost ground, with Indiabulls Housing Finance Ltd down as much as 7.9 percent and PNB Housing Finance up to 9.6 percent lower.

Reliance Home Finance Ltd fell up to 20 percent after rating agency ICRA and CARE Ratings cut rating on some of the company’s debt programmes.

“There is some weakness in the Indian market, in line with Asian shares, which fell after China’s manufacturing data disappointed,” said Sunil Sharma, chief investment officer, Sanctum Wealth Management.

“Domestically, investors are digesting additional provisioning worries and loan book quality. Finally, there is probably some caution ahead of the Fed meeting this week.”

Among other losers, shares of motorcycle maker Hero MotoCorp Ltd dropped as much as 3.6 percent to their lowest level since March 2016, after it reported weak quarterly results on Friday.

Bucking the broader trend, IT stocks advanced. IT bellwether Infosys Ltd gained 1.9 percent, while HCL Technologies added 3.4 percent. (Reporting by Krishna V Kurup in Bengaluru; editing by Uttaresh.V)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below