Indian shares ended lower for the third successive session on Thursday, dragged by bank stocks such as ICICI Bank and State Bank of India, as subdued global cues hurt risk appetite despite better-than-expected Dec-quarter gross domestic product (GDP) data. The broader NSE index closed below 10,500 for the eighth time in 10 sessions, ending 0.33 percent lower at 10,458.35. It was down 0.38 percent for the week, a fourth weekly loss in five.
The benchmark BSE index closed down 0.40 percent at 34,046.94. The index fell 0.28 percent in the week. Share markets will be closed on Friday due to a public holiday. India's economy grew 7.2 percent in the December quarter, the fastest in five quarters, as it regained status as the fastest growing major economy ahead of China.
In a data set that some economists said had put an early interest rate hike on the agenda, India also edged up its 2017/18 GDP growth forecast to 6.6 percent from 6.5 percent. "Though the GDP data is positive, overall global concerns are still hurting domestic markets," said Aditya Agarwal, head -technical research, Way2Wealth. Bank stocks were among the biggest laggards, with ICICI Bank and State Bank of India falling 2.68 percent and 1.75 percent, respectively.
The NSE index has shed 0.8 percent in the last two trading sessions, dragged lower by state-run banks, after Punjab National Bank said fraudulent transactions could rise to $2 billion, while certain directives from the finance ministry added to short-term woes. The index fell 4.85 percent in February, while the BSE index dropped 4.95 percent during the same period. Both indexes posted their biggest monthly fall in two years.
Auto stocks, however, rose, with Bajaj Auto Ltd up 2 percent and Tata MMotors Ltd 1.7 percent higher Automobile companies are set to report February sales numbers throughout Thursday.
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