The Nifty Bank index dropped 340 points, or 0.7%, dragged by Axis Bank and ICICI Bank. PSU banks reversed Tuesday’s gains, with the sub-index down 1%. In the broader market, the Nifty Midcap 100 fell 102 points to close at 59,519, underperforming the benchmarks.
IT stocks were among the worst performers ahead of earnings, with LTI Mindtree and Wipro falling over 2%. Axis Bank also declined ahead of its quarterly results.Metals reversed losses and staged a sharp intra-day rebound led by Tata Steel and JSW Steel, helping cap further downside in the indices.
Sona BLW Precision Forgings jumped nearly 7% to top the midcap gainers, following reports that it won a supply order from Chinese electric vehicle maker BYD.On the downside, Max Financial Services dropped after an IRDAI panel recommended that insurance companies should not merge with non-insurance entities. Defence stocks continued to reel under pressure, with Bharat Dynamics and Mazagon Dock Shipbuilders among the top losers.
Among earnings movers, HDFC Asset Management Company rose after reporting a strong set of quarterly numbers, while Polycab India slipped on weak margins. Newgen Software plunged nearly 6% following a muted Q1 performance.
IndiGo’s parent, InterGlobe Aviation, declined nearly 3% on reports of subdued air passenger traffic in the first half of July.
Sentiment was also dampened by regulatory comments. Shares of BSE fell after a SEBI official said the market regulator is in favour of longer-term derivatives, a move that could impact trading volumes on shorter-duration contracts.
ICICI Prudential Life continued to fall, down 1%, extending losses from the previous session.
Among smaller stocks, Le Travenues Technology surged 20% and Navkar Corporation gained 14% after posting strong Q1 earnings.
