(Reuters) - The Sensex edged down on Thursday, as subdued global market sentiment offset better-than-expected growth data at home, with bank stocks such as ICICI Bank and State Bank of India among the big losers.
Asian stocks were mostly lower on Thursday after Wall Street marked its worst monthly performance in two years as hawkish-sounding comments from new Federal Reserve Chair Jerome Powell reverberated across the broader risk asset markets.
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.
The broader Nifty was down 0.01 percent at 10,491.70 as of 0729 GMT, while the benchmark Sensex was 0.08 percent lower at 34,157.27.
“The NSE index is range-bound between 10,300 and 10,650, with concerns on state-bank stocks in the near term,” Agarwal said.
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 Motors Ltd 1.7 percent higher. Automobile companies are set to report February sales numbers throughout Thursday.
Indian share markets are closed on Friday for a public holiday.
Reporting by Arnab Paul in Bengaluru; Editing by Biju Dwarakanath