The Sensex declined nearly 1 per cent and the Nifty slipped 0.93 per cent on Thursday. Domestic shares fell in line with weak global shares that declined on market talk that a hedge fund had been liquidating large positions in commodities, as well as worries the Federal Reserve could slow its bond buying program.
Bank shares led the falls a day after RBI data showed that loan growth continues to remain a concern. ICICI Bank shares traded 2.7 per cent lower while State Bank of India fell 0.8 per cent.
Banks' advances grew 8.7 per cent so far this fiscal year, compared with 11.2 per cent a year earlier, while deposit growth was 7.8 per cent compared with 11.4 per cent in the same period a year earlier.
Shriram Transport Finance shares sank nearly 7 per cent after U.S. private equity firm TPG Capital planned to sell part of its stake in the company to raise about $300 million, according to a term sheet seen by Reuters.
(Copyright Thomson Reuters 2013)