Market Update: Axis, ICICI top losers as Bank Nifty falls over 1%; Dena Bank hits 52-week low
The Indian benchmark indices began the Wednesday morning on a negative note with the Nifty shedding 33.30 points or 0.33 percent while the Sensex slipped 0.27 percent, down 87.06 points. The Bank Nifty was the top index loser in the morning trade, downover 1 percent led by Axis Bank which cracked over 6 percent while Yes Bank was down 2.82 percent and ICICI Bank shed 2.26 percent.
From the Nifty50 index, the top losers were Axis Bank followed by ICICI Bank, Yes Bank and State Bank of India, each falling over 2 percent each. Zee Entertainment Enterprises was the other top Nifty loser which shed 1.58 percent. The most active Nifty stocks apart from Axis, ICICI and SBI were Dewan Housing Finance and Reliance Capital.
The top losers from the Sensex included names like Dena Bank which cracked 6.14 percent while Religare Enterprises and Dilip Buildcon fell over 3 percent each. Bharti Infratel after ralling since last week was down 2.92 percent.
The stocks which hit 52-week low on the NSE were Alps Industries, Dena Bank, JMT Auto, Moser-Baer, United Bank of India and Vardhman Polytex Limited while on the BSE, Pratibha Industries, Kitex Garments, Praj Industries and Sri Adhikari Brothers.
The market breadth was weak on Wednesday morning with the advance decline trend in favour of the declines as 18 advanced while 31 declined. On the BSE, 1375 advanced while 1301 declined.
Global broking firm CLSA has maintained a buy on Axis Bank but has cut the target price to Rs 612 from Rs 620. However, the firm expects pickup in loan growth along with healthy CASA growth and strong growth for subsidiaries.
Credit Suisse on the other hand has maintained a neutral rating and has cut price target to Rs 485 from Rs 506. It expects equity dilution in coming quarters with total stress portfolio at 10 percent and CET-1 less than 11 percent and estimates EPS for FY18 cut by 25 percent on higher provisions.
BofA-ML has maintained a buy on Axis Bank buut has cut price target to Rs 590 from Rs 650. The house has also cut EPS forecasts by 34 percent and 13 percent for FY18 and FY19 respectively on higher credit cost.
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