Bloodbath on bourses as banking stocks sink

Mumbai: BenchmarkSensex nosedived 1,628 points or 2.23 per cent on Wednesday, marking its biggest single-day slide in more than one-and-a-half years following an intense sell-off in banking, metal and oil shares triggered by weak global trends.

The 30-share BSE Sensex plunged 1,628.01 points or 2.23 per cent to settle at 71,500.76 with 24 of its constituents ending in the red. During the day, it plummeted 1,699.47 points or 2.32 per cent to a low of 71,429.30. The Nifty tanked 460.35 points or 2.09 per cent to settle at 21,571.95, falling for the second day in a row. Key stock indices suffered their worst single-day losses in percentage terms since June 13, 2022. HDFC Bank was the major drag.

“A nosedive correction in banking stocks, along with concerns over delays in US FED rate cuts, impacted market sentiments. Given the elevated valuations, coupled with the fact that optimism regarding earnings and GDP growth for FY24 is already reflected in the market, triggered the correction,” said Vinod Nair, head (research), Geojit Financial Services.

The sell-off triggered selling in other banking shares with Kotak Mahindra Bank, Axis Bank, ICICI Bank, SBI and IndusInd Bank closing in the red. Tata Steel, JSW Steel, Bajaj Finserv, Maruti, Asian Paints and Tata Motors were among the other major laggards. HCL Technologies, Infosys, Tech Mahindra, Tata Consultancy Services, Nestle and Larsen & Toubro were the gainers.

“Today’s market fall is led by banks on the back of HDFC Bank results, showing heightened levels of CD ratio beyond RBI’s comfort levels,” said an analyst.