Shares of state-run Bank of Baroda fell more than 10 percent on the BSE on Monday in response to the second-largest Indian lender announcing disappointing quarterly results on Friday after market hours. Stocks of many other PSU banks, such as State Bank of India, Canara Bank, Dena Bank and Syndicate Bank, also ended the day with losses.
The Bank of Baroda stock opened at Rs. 150, marginally lower from its Friday close, and embarked on a downhill path to hit an intra-day low of Rs. 139.80, but later trimmed losses to close at Rs. 142.20, down 8.23 percent from its previous close.
The bank's standalone net loss was Rs. 3,230 crore for the March 2016 quarter as against a net profit of Rs. 598 crore in the corresponding quarter last year. A 227 percent rise in provisioning for bad loans resulted in the bank's profit taking a hit.
On the NSE, the Nifty PSU Bank was the only sectoral index to end with losses.
The S&P BSE Sensex opened from its Friday close but rebounded later to close with a gain of 164 points at 25,653. The NSE Nifty gained 46 points to close at 7,860.
"A recovery in oil and commodities sparked a late rally in metal makers, private banks and automobile stocks," AK Prabhakar, head of research at IDBI Capital Capital Market Services Ltd, told the Mint.
Both foreign institutional investors (FIIs) and domestic institutional investors (DIIs) were net sellers of equities worth Rs. 79.84 crore and Rs. 127.91 crore, respectively, according to provisional data released by the NSE.
Markets ignored
The Indian rupee closed at 66.81 to the US dollar, recovering from the opening low of 66.91 to the greenback. "Following weak global cues the rupee opened on a weaker note but rose in the intra-day session after rebound in domestic equities," IFA Global said in a note.
Gold gained Rs. 25 to close at Rs. 30,050 per 10 gm while silver edged higher by Rs. 335 to end at Rs. 41,260 per kg in the Delhi bullion market on Monday.
