Markets Turn Red, SBI Down Over 3.5% On Asset Quality Concerns

The Indian markets are trading majorly lower after index heavyweight SBI disappointed the street with its Sept quarter numbers. SBI's asset quality deteriorated, with the Gross NPAs increasing by 16 bps to 5.15% and its Net NPAs increasing by 22 bps to 2.44% on a sequential basis. The asset quality of the bank is among the worst among its peers.

Among the sectoral indices, Capital Goods, Bankex and IT are currently in the negative territory. Only the FMCG, Realty and Healthcare indices have gone higher.

The other Asian markets are also down. The Hang Seng and Nikkei are lower by 1.05% and 0.91% respectively. Shanghai has given up its early gains and is now trading lower by 0.12%. Reports said that the Japanese stocks have fallen (with the Nikkei 225 Stock Average capping its longest losing streak in 9 weeks) after exports declined on a stronger Yen and amid concerns that the bailout of Greece will be delayed.

Back home, SBI is among the worst performing stocks and is down 3.77% at Rs 2158.95 per share. Other stocks like ONGC, Sterlite Industries, BHEL, ICICI Bank, L&T and Infosys have also lost more than 1%. M&M, Bharti Airtel, Hindalco, HDFC Bank, etc. are marginally lower.

Bajaj Auto is the leading index gainer so far in the day, up by 0.71% at Rs 1858.60 per share. In others, Cipla, Tata Power, Maruti Suzuki and ITC are trading higher.

The market breadth is weak at the moment. On the BSE, 1499 shares have declined, 1083 shares have advanced and 135 remain unchanged.