Sensex Falls More Than 600 Points as HDFC and Axis Bank Earnings Disappoint

Indian equities fell on Monday as June-quarter results from the country's biggest banks failed to satisfy investors already nervous about oil. The BSE Sensex dropped more than 600 points at its intraday low before paring the loss to close down about 443 points at 77,708, and the Nifty settled around 24,239, pulled lower by a selloff in banking shares, according to Business Standard.

The reaction was harsh even where profits grew. HDFC Bank fell about 5 percent after reporting a 5 percent rise in quarterly net profit, with net interest income up 7 percent, because its margin came in weaker than expected, according to the Economic Times. Axis Bank dropped about 6 percent despite a 22.5 percent jump in profit, as analysts flagged margin concerns. Not every lender suffered. ICICI Bank rose about 3 percent on stronger loan growth and improving asset quality, and Bernstein upgraded the stock.

Reliance Industries was an exception. Its shares gained after better-than-expected results across energy, refining and digital businesses, and several brokerages raised their price targets.

India imports more than 85 percent of its crude, so the jump in Brent above 90 dollars amplified the earnings-driven weakness by threatening a wider trade deficit and a softer rupee.