Sensex Falls Over 600 Points On Selling In Heavyweights

New Delhi: The BSE Sensex tanked more than 600 points on Tuesday as heavyweights came under selling pressure. The BSE Sensex was trading at 71,316.28 points, down 625.29 points or 0.87 % on Tuesday.

Bajaj Finance was the top loser, down 5 percent. NTPC, Ultratech Cement, Bajaj Finserv, ITC, Titan, Reliance were all down 2 percent. Bajaj Finance slumped 5 percent after quarterly results. Motilal Oswal Financial Services said in a report that 3QFY24 NIM declined 25bp QoQ to 12.4 percent while the reported NIM contracted 10bp QoQ. (Also Read: Markets Fall In Early Trade Dragged By Bajaj Finance And Reliance)

“We model a NIM compression of 20bp in FY25 due to the expected rise in the cost of borrowings and difficulty in passing on any further interest rate hikes to customers,” it said. The report pointed to a minor deterioration in asset quality with credit costs elevated. Credit costs were higher due to elevated Rural B2C delinquencies and lower collection efficiencies in Urban B2C segment. (Also Read: Delhiites Can Now Earn Up To Rs 900 Every Month; Electricity Bills For Consumers With Rooftop System To Be 'Zero')

Customer acquisitions and the new loan trajectory have been strong. The momentum will only get stronger going ahead, with the digital ecosystem – app, web platform, and full-stack payment offerings – in place.

“BAF should be able to offset the NIM compression in FY25 with lower operating cost ratios. Our EPS estimates are largely unchanged,” the report said.