Closing Bell: Sensex And Nifty Post Biggest Decline In 2 Years, Nifty Bank Ends 4% Lower Led By HDFC Bank

The Indian stock market witnessed its steepest decline in two years, with both the benchmark indices, Sensex and Nifty, plummeting by 2%. The Nifty Bank, in particular, faced a severe setback, recording its most substantial fall since February 2022, sliding more than 4%.

The leading cause behind today's market turmoil was the dismal performance of HDFC Bank, which experienced its worst day in three years. The banking giant's shares nosedived by over 8% following disappointing earnings, contributing to more than 50% of the overall decline in both Nifty and Nifty Bank. HDFC Bank's market capitalization witnessed a staggering erosion of Rs 1 lakh crore.

The broader market also bore the brunt of the selloff, with BSE-listed companies collectively shedding a massive Rs 4 lakh crore in market capitalization today. All sectoral indices closed in the red, reflecting the pervasive negative sentiment among investors. The volatility index surged by 11%.

Sensex witnessed a drastic drop of 1,628 points, closing at 71,501, while Nifty recorded a decline of 460 points, settling at 21,572. The Nifty Bank fared even worse, witnessing a staggering fall of 2,061 points to conclude at 46,064. The Midcap Index also felt the impact, losing 516 points and closing at 47,152.

All Nifty Bank constituents, except for Bandhan, ended the day in the red, reflecting the widespread panic among investors. The Indian Energy Exchange (IEX) also took a hit, with shares plummeting by 11% following a comment by the Power Minister on market coupling.

While many stocks struggled, the Information Technology (IT) sector emerged as a surprising bright spot amid the market sell-off. Most IT stocks experienced buying interest and closed in the green, providing a silver lining amidst the overall gloom.

On the corporate earnings front, Asian Paints reported results in line with expectations, yet the stock saw a 2% decline. Meanwhile, ICICI Lombard witnessed a surge of 6% after an improved showing in Q3, while L&T Tech defied expectations, closing 4% higher despite reporting below-than-expected results.

Pricol, anticipating positive results, saw block deals of over 15%, with Minda Corp and private equity likely among the sellers. Polycab, on the other hand, extended gains and closed with a 2% increase ahead of its results announcement.

The market breadth painted a bleak picture as declines far outweighed advances, with an advance-decline ratio standing at 1:3. This further reinforced the prevailing bearish sentiment and suggested that the broader market was grappling with significant selling pressure.