Markets

Sensex sinks 587 points amid global selloff; HDFC Bank top drag post Q1 show

Domestic equity benchmarks posted their biggest drop in more than two months on Monday as a sell off in global markets and lacklustre corporate results sapped risk appetite. File   | Photo Credit: Vivek Bendre

Domestic equity benchmarks posted their biggest drop in more than two months on July 19 as a sell off in global markets and lacklustre corporate results sapped risk appetite.

A plunging rupee, which slumped 31 paise against the U.S. dollar, also weighed on sentiment, traders said.

The 30-share BSE Sensex tumbled 586.66 points or 1.10% to close at 52,553.40. This was its biggest fall since April 30 this year.

Similarly, the broader NSE Nifty slumped 171 points or 1.07% to 15,752.40.

HDFC Bank was the top loser in the Sensex pack, skidding 3.34%, after the country’s largest private sector lender on Saturday posted a 14% rise in Q1 net profit but also reported reverses on the asset quality front.

IndusInd Bank, HDFC, Axis Bank, Maruti, Bajaj Finance and Kotak Bank were among the other major laggards, dropping up to 2.78%.

Only four Sensex constituents closed in the green — NTPC, Nestle India, Dr Reddy’s and Sun Pharma, rising up to 1.89%.

World stocks buckled under selling pressure as rising COVID-19 cases due to the Delta variant cast fresh doubts over the global economic recovery.

“Domestic equities fell sharply today on weak global cues as concerns over recent rise in fresh COVID-19 cases in various parts of the world including U.S. weighed on sentiments.

“Financials have witnessed steeper correction today as sub-par performance delivered by HDFC Bank in 1Q FY22 and visible deterioration in asset quality created apprehension among investors about banks and NBFCs having exposure in retail and SME,” said Binod Modi, Head - Strategy at Reliance Securities.

Vinod Nair, Head of Research at Geojit Financial Services, said, “Banks led the domestic downtrend as initial quarterly results pointed to cautious asset quality due to the impact of the second wave. Slackening economic growth in the US led to reports of likely downgrade in growth forecast in current year, triggering global selloff.” Sectorally, BSE finance, bankex, metal, auto and consumer durables indices shed up to 1.80% , while realty, healthcare, utilities and FMCG managed to close higher.

Broader BSE midcap and smallcap indices slipped up to 0.58%.

On the global front, bourses in Shanghai, Hong Kong, Seoul and Tokyo ended with heavy losses. Equities in Europe were also in the red in mid-session deals.

Meanwhile, international oil benchmark Brent crude declined 2.28% to U.S. $ 71.91 per barrel.

The Indian rupee tumbled 31 paise to end at 74.88 against the U.S. currency on Monday, marking its second straight session of loss amid a lacklustre trend in domestic equities and strengthening of the greenback overseas.


Our code of editorial values

This article is closed for comments.
Please Email the Editor

Printable version | Sep 25, 2021 1:12:11 PM | https://www.thehindu.com/business/markets/sensex-sinks-587-points-amid-global-selloff-hdfc-bank-top-drag-post-q1-show/article35407464.ece

Next Story