MUMBAI: India’s benchmark indexes closed marginally lower on Thursday as a pullback in financial services on concerns over a likely hike in bank deposit insurance coverage offset gains in metal companies.
The Nifty 50 ended the day 0.09% lower at 22,913.15, while the BSE Sensex fell 0.27% to 75,735.96.
After slipping to their lowest since early June on Friday, the benchmarks have been little changed this week.
While the recent correction has hit stocks with lofty valuations hard, it has also lowered valuations for some quality companies across the market, said Arun Malhotra, founder and CIO at CapGrow Capital.
On the day, top private sector lenders HDFC Bank and ICICI Bank fell 2.3% and 0.9% respectively, dragging benchmarks lower. Financial services index lost 0.75% after rising for three consecutive sessions.
Analysts attributed the decline to profit booking and concerns around a potential increase in deposit insurance.
The government is considering significantly raising insurance cover for bank deposits to 8-12 lakh rupees from the current 5 lakh rupees, according to a Moneycontrol report.
Comments
Comments are closed for this article.