Markets edge lower after disappointing SBI Q3 results

BSE-midcaps and small caps underperform benchmark indices

Markets edged lower in afternoon trades this Thursday after State Bank of India, country's biggest lender, posted weaker-than-expected third quarter net profit and rise in bad loans exacerbating growth concerns.

At 1PM, the Bombay Stock Exchange's 30-share index Sensex fell 40 points to trade at  19,568  while the National Stock Exchange's 50-share Nifty declined 20 points at 5,914.

Investors also ignored easing trend in wholesale price inflation released later today as key focus remained Union Budget on February 28 and government's road-map to bridge current account deficit and fiscal deficit that will help decide the stance of the Reserve Bank of India's monetary policy next month.

India's WPI inflation eased to 6.62 percent in January, compared to estimated 7 percent in January.

Meanwhile, Asian markets traded higher ahead of the meeting of G20 finance ministers and central bank officials this weekend for their assessment of the health of the global economy.

Equity markets in China and Taiwan are closed for public holidays. Other Asian markets such as Japan's Nikkei rose 0.5% to 11,307, Hong Kong's Hang Seng gained 0.72% to 23,383, Singapore's Straits Times fell 0.12% to 3,297 while South Korea's Kospi was up 0.18% to 1,980 today.

Back home, IT, metal, FMCG sectors gained while autos, capital goods, consumer durables, healthcare, banks,  power sectors dropepd on BSE.

Among key Sensex stocks, HUL gained 2.4%, GAIL rose 1.3%, TCS and Infosys added 1.3% and 1% respectively, Tata Steel was up 0.6%, HDFC Bank rose 1% on BSE.

Among losers,  Bharti Airtel fell 3.7%, Wipro dropped 3%, Maruti Suzuki was down 2.6%, SI dropped 1%, Bajaj Auto fell 1%, HUL  dropped 0.7% and BHEL shed 0.4% respectively on BSE.

The other key notable movers include,   State-owned lender State Bank of India was down 1%, paring losses after reported a 4% increase in net profit at Rs 3,396 crore for the quarter ended December 2012.  It was Rs 3,263 crore in December 2011.

The gross NPA for the quarter under review was 5.30% as against 5.15% in September 2012.

Shares of Sahara Housingfina Corporation fell about 15% today after the market regulator Sebi froze bank accounts of Sahara Group companies yesterday.

The broader markets traded negative with mid-caps and small-caps falling 1-1.4% on BSE.

The market breadth is negative. Out of 2,672 stocks traded, 1,851 stocks declined compared to 697 advances on BSE.