Audio analysis: Union Bank's NPA spooks market, ITC beats estimates

Markets closed near the low of the day, with the Sensex closing the day 153 points higher than the previous day’s close at 16,939, and the Nifty closing 48 points lower at 5,098.

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The Sensex opened with a gap of nearly 270 points and moved in a narrow range for most of the trading session. However, it started falling rapidly after Union Bank announced results, which was way below market expectations.

However, the public sector bank’s NPA provisioning, which has almost doubled from 1.18 percent to 2.04 percent, really spooked the market, following which all other PSU banks fell considerably.

Among the banking stocks, Union Bank, Oriental Bank, Andhra Bank and Canara Bank were the biggest losers while the Banking Index fell over 0.4 percent on Monday.

Meanwhile, all analysts are expecting a 25 basis point hike in the interest rates tomorrow.

For more information on the market’s performance today listen to our market wrap below: