The Axis Bank share price plunged sharply in intraday trading on Friday, triggering a broader sell-off in the financial sector. The decline followed the release of the bank’s Q1 FY26 earnings, which failed to meet market expectations.
Market Performance
- Bank Nifty Index declined 1% intraday
- The index faced its second straight session of losses
- Broader selling was visible across insurance and NBFC stocks
- Sensex dropped over 600 points, and the Nifty fell below 24,950
Main News: Axis Bank Share Price Falls Over 6%
Axis Bank shares slipped as much as 6.36%, touching a low of ₹1,086 on the NSE. The fall followed the bank’s quarterly earnings report, which revealed a dip in performance.
- The stock opened 6.02% lower
- By midday, it recovered slightly to ₹1,114.20, still down 3.93%
- The stock has now fallen for two consecutive sessions
- Axis Bank’s GDR also declined 4.8% to USD 64.30
Company Details: Axis Bank Q1 FY26 Results
Axis Bank reported a decline in its consolidated net profit for the quarter ending June 2025.
Financial Highlights:
Net Profits
- Consolidated Net Profit: ₹6,243.72 crore
- 3% YoY decline attributed to changes in NPA norms and loan upgrade policies
Alternative Net Profit Reporting
- Two separate figures for net profit were reported: one showed a 4% YoY fall to ₹5,806 crore, while another indicated ₹6,243.72 crore, likely reflecting differences in accounting treatments or adjustments. This variance highlights inconsistencies in profit reporting by the bank.
Sector-Wide Impact
The disappointing performance of Axis Bank impacted the broader financial sector:
Banking Stocks:
- Kotak Mahindra Bank, SBI, HDFC Bank, ICICI Bank, and IDFC First Bank fell by up to 1.5%
- IndusInd Bank was the only gainer, up 1%
Insurance and NBFC Stocks:
- Bajaj Finserv
- LIC Housing Finance
- ICICI Prudential Life Insurance
- HDFC Life
- Shriram Finance
- SBI Life
All fell up to 2%
Indices Performance:
- Nifty Financial Services Index: Down nearly 1%
- Nifty Private Bank Index: Dropped 1.23%
8 out of 10 constituents traded in the red
Summary
The decline in Axis Bank's share price, following underwhelming Q1 results, exerted notable pressure on the Bank Nifty and the broader financial markets. The resulting sell-off affected key banks, NBFCs, and insurance stocks. Market sentiment remained cautious, with investors attentive to ongoing sector developments.
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