Sensex tumbles over 600 points: Why is stock market falling today?
Axis Bank led the slide, plunging over 4%—its sharpest fall in six months—after it posted a lower-than-expected June-quarter profit.The bank attributed the miss to a rise in bad loans following a one-time industry-wide benchmarking exercise and a dip in its net interest margin to 3.8%, down from 4.05% in the previous quarter.The lender said it had to realign its asset classification norms after discovering that a peer bank was using a stricter standard. While Axis did not name the bank, the change led to higher provisioning and credit costs.Brokerages flagged further concerns. Macquarie said the results raised "more questions than answers", pointing to Axis's elevated credit costs compared to peers, even after accounting for the one-time shift.The miss at Axis Bank weighed on investor sentiment across the sector, even as IT stocks provided some relief. Wipro gained 3% following its results, but the Nifty IT index remained flat as LTIMindtree slipped 2%.Broader markets also stayed weak. The Nifty Smallcap 100 and Midcap 100 indices were down 0.6% and 0.5%, respectively. So far this week, the Sensex has shed 0.8%, while the Nifty is down 0.5%, setting up both indices for a third straight week of losses.All eyes are now on the June-quarter results of heavyweights HDFC Bank and ICICI Bank, due on Saturday, which could set the tone for next week's market direction.- EndsTrending Reel
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Indian Express
12 hours ago
- Indian Express
Stocks to Watch on Monday, July 21: Reliance Industries, BEML, HDFC Bank, JSW Steel, Hindustan Zinc and more
Stocks to Watch: Shares of several companies including Reliance Industries, Reliance Power, Reliance Retail, and HDFC Bank, among others will remain in focus on Monday, July 21. On Friday (July 18), benchmark Sensex tanked 501 points while Nifty closed below the 25,000 mark on Friday due to selling in banking shares after muted quarterly earnings and foreign fund outflows. Falling for the second straight day, the 30-share BSE Sensex declined by 501.51 points or 0.61 per cent to settle at 81,757.73. During the day, it shed 651.11 points or 0.79 per cent to hit a low of 81,608.13. The 50-share NSE Nifty dropped 143.05 points or 0.57 per cent to close at a month's low of 24,968.40. Yes Bank reported a 59 per cent jump in its June quarter net profit to Rs 801 crore, helped by non-core income growth. Its core net interest income grew 5.7 per cent to Rs 2,371 crore on the back of a 5 per cent growth in advances and a 0.10 per cent widening in the net interest margin at 2.5 per cent. 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Business Standard
13 hours ago
- Business Standard
Retail loan growth sluggish for private banks in Q1, festive demand eyed
Retail loan growth of private sector banks was sluggish during the first quarter (April–June) of the current financial year, earnings reports showed. Five private lenders, including the top three, posted single-digit growth in their retail loan books, which dragged down overall loan growth for the quarter. These banks are pinning their hopes on the upcoming festive season, coupled with lower interest rates and income tax breaks, to revive demand in the retail segment in the coming quarters. Top lenders report weak momentum in home, personal loans HDFC Bank, India's largest private lender, reported 8.1 per cent year-on-year (YoY) growth in retail advances in Q1FY26, and 0.3 per cent sequential growth. Mortgage loans grew at just 7 per cent YoY, and other retail assets rose 9.6 per cent YoY. As a result, the bank's overall advances grew 6.7 per cent YoY and 0.4 per cent sequentially. ICICI Bank, the country's second-largest private sector lender, recorded 7 per cent YoY growth in its retail portfolio. Mortgage loans rose 10.3 per cent YoY, while vehicle loans grew 2.3 per cent, personal loans 1.4 per cent, credit cards 1.5 per cent, and loans against shares declined nearly 5 per cent YoY. Its overall loan book grew 11.5 per cent, supported by nearly 30 per cent YoY growth in business banking. Axis Bank's retail book grew just 6 per cent YoY. Home loans saw flat growth, personal loans rose 5 per cent YoY, credit cards 2 per cent, while auto loans declined 2 per cent. Yes Bank's retail portfolio registered a marginal 0.3 per cent growth in Q1FY26. RBL Bank reported 5 per cent YoY growth in retail advances, while its overall advances grew 9 per cent. System-wide retail growth slows amid rate sensitivity According to the Reserve Bank of India's sectoral deployment data for May, retail loan growth for the banking system has moderated to 13.7 per cent, down from over 19 per cent in the same period last year. This slowdown is largely due to weaker growth in personal loans, vehicle loans, and credit cards. Bank managements remain optimistic that the festive season, along with the combined effects of lower inflation, benign interest rates, and increased disposable income from tax breaks announced in the Budget, will drive demand in the second half of the year. '...Consumption in the country contributes about 60 per cent of GDP. So, to that extent, there will be more than half focused towards the consumer segment. We see food inflation being benign and overall inflation lower, with the onset of the festival season in the next few weeks. We do expect greater opportunity in those areas,' said Srinivasan Vaidyanathan, CFO of HDFC Bank, during the post-earnings media call on Saturday. Monetary easing and CRR cut expected to support lending Between February and June, the RBI cut the policy repo rate by 100 basis points while maintaining adequate liquidity. Additionally, the phased 100 bps reduction in banks' cash reserve ratio (CRR) requirement, announced in June and set to begin in September, will release Rs 2.5 trillion into the banking system for lending. Axis Bank's management said that while disbursements in the retail segment have picked up, asset under management (AUM) has not grown due to repayments. However, they believe there is an opportunity to grow and have guided for loan growth exceeding the system's by over 300 basis points. According to ICICI Bank's management, 'substantial monetary easing that has taken place starting from Q4 and carried through into Q1" will likely lift sentiment. The bank also said that with asset quality stabilising in unsecured retail loans, the segment is expected to grow in the coming quarters.
News18
a day ago
- News18
Algoquant Fintech secures Rs 280 cr credit facility from Axis Bank
Last Updated: New Delhi, Jul 19 (PTI) Algoquant Fintech on Saturday said the company has secured Rs 280 crore credit facilities from private lender Axis Bank. The proceeds will be utilised to fund its growth plans and strengthen market position, the company said in a statement. As part of its growth and operational strategy, the company approached Axis Bank to avail a diverse range of credit instruments, including bank guarantees and other working capital facilities, necessary to scale its activities and meet the dynamic demands of the industry, it said. 'Following thorough deliberation and assessment, Axis Bank sanctioned credit facilities worth Rs 280 crores, subject to the standard terms and conditions outlined in the official sanction letter," the company said. PTI PRS HVA Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
