- Top laggards on the 50-scrip index were Adani Ports, Indiabulls Housing Finance, Bajaj Finance, Yes Bank and Bajaj Finserv, finishing between 4.3 per cent and 12.5 per cent lower.
- The Nifty Bank finished 1.7 per cent lower, dragged by ICICI Bank and Yes Bank which fell 3.5 per cent and 5.3 per cent respectively. ICICI Bank is due to report its earnings for the October-December period on Wednesday. State Bank of India shares closed 1 per cent lower.
- Financials including Yes Bank and Bandhan Bank have said that their exposure to IL&FS is about Rs 2,530 crore and Rs 385 crore respectively.
- Canara Bank shares ended 5.4 per cent lower, despite the lender reporting a 152.5 per cent jump in its quarterly net profit, buoyed by higher interest income and a write-back of provisions made for mark-to-market losses.
- Analysts say concerns about the country's non-banking financial services sector affected the markets. "The issue with Infrastructure Leasing and Financial Service Ltd (IL&FS) is not over, contrary to earlier beliefs and that is why we see housing finance companies in the red today," news agency Reuters quoted AK Prabhakar, head of research, IDBI Capital, as saying.
- A string of defaults at the major Indian infrastructure financing and building company had triggered sharp falls in the stock and debt markets last year amid fears of contagion within the rest of the country's financial sector.
- On Friday, IL&FS Transportation Networks unit Elsamex said it would initiate insolvency proceedings in Spain. Earlier last week, CRISIL downgraded debenture rating of IL&FS Transportation network's unit.
- Caution prevailed among investors ahead of the Budget due later this week, say analysts.
- "There is a wait-and-watch sentiment because of the budget," said Vinod Nair, head of research, Geojit Financial Services. "Earnings this quarter hasn't been great so far, and I don't think we will witness earnings growth of even 7-8 per cent this year."
- However, gains in Zee Entertainment capped further declines in NSE index, as the media company's stock jumped nearly 15 per cent after it denied any involvement in demonetisation-linked transactions.
(With agency inputs)
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