Markets recover after SBI’s earnings

Mumbai: Main stock indexes sharply cut earlier losses to edge higher on Friday after better-than-expected earnings from State Bank of India relieved concerns about non-performing loans and credit growth in the lending sector.

The benchmark BSE index rose 0.25%, recovering from an earlier fall of as much as 1.6%.

The 50-share NSE index gained 0.27%.

SBI shares rose 3.3% after India’s biggest lender reported net profit surged from a year earlier on the back of a sharp drop in provisions for bad loans and strong credit demand.

The NSE bank index rose 1.1%, while private lender ICICI Bank added 1.3%.

BSE index fell 1.12%, earlier hitting its lowest intraday since 9 January, while the 50-share NSE index was down 1.2%, as Asian shares tumbled, rupee hit new record low against the dollar.

Automobile, lenders and techs shares led decline: Infosys, ICICI Bank, and Tata Motors were down 1-2% each.

MSCI’s broadest index of Asia-Pacific shares outside Japan fell 2.4%, hitting four-month low.