Indian benchmark indices trades lower, NIFTY50, SENSEX slides 1% each

BENGALURU, Jan 23 (Reuters) - Indian shares surrendered early gains to drop in the afternoon session on Tuesday, as HDFC Bank led a decline in financials, while Zee Entertainment plunged nearly 30% after its merger with Sony's India unit collapsed.

The blue-chip NSE Nifty 50 and the S&P BSE Sensex both slid 1% each, to 21,352.25 points and 70,750.29, respectively, as of 1:22 p.m. IST. The Nifty had risen by as much as 0.8% and the Sensex by 0.86%, earlier in the day.

HDFC Bank fell 3%, extending to 14% its losses since its disappointing results last week. It was the biggest drag on the benchmark Nifty index and sparked a 1.6% slide in financial stocks, which have the most weight among the 13 major sectors.

As per experts, mixed results this earnings season indicate specific stocks will drive the market as no common trend has emerged so far.

The small and mid-cap indexes were down 1.5% and 2.2%, respectively. They have outperformed their larger peers so far this year, replicating their form from last year.

Meanwhile, Zee Entertainment plunged up to 30% and were set for their worst day ever after the cash-strapped broadcaster's failed $10 billion merger with Sony's local unit.

Cipla and ICICI Bank advanced 7% and 2%, respectively, after beating third-quarter profit estimates. Cipla is among the top gainers in the Nifty 50 and the top gainer on the Nifty pharma index, which rose 2%.

(This story has been published from the Reuters news feed without major editorial change.)