MUMBAI: Indian shares fell on Monday, led by private lenders after quarterly earnings pointed to pressure on net interest margins, while escalating conflict in the Middle East dampened sentiment further.
The benchmark Nifty 50 fell 0.39 percent to 24,238.5, while the BSE Sensex shed 0.57 percent to 77,708.52.
HDFC Bank, India’s largest private lender, fell 5.1 percent, its steepest drop in four months after in-line June-quarter profit was overshadowed by a sharper-than-expected drop in net interest margin.
Kotak Mahindra Bank and Axis Bank also fell 2 percent and 5.5 percent, respectively.
The three lenders were the biggest contributors to the benchmark Nifty 50’s losses, and overshadowed ICICI Bank’s 1.1 percent rise on better-than-expected earnings. Private sector banks and financials fell 2.3 percent and 1.2 percent, respectively.
Bernstein upgraded ICICI Bank to “outperform” from “neutral” after the results, while Investec downgraded HDFC Bank to “hold” from “buy”.