Sensex sinks 1,628 pts, Nifty breaks below 21,600 as HDFC Bank plunges 8%

Stock market highlights on January 17, 2024: The Nifty Bank, Financial Services, and Private Bank indices declined over 4 per cent each.

Closing Bell on January 17: Weak global sentiment, coupled with bear hammering of HDFC Bank, dragged benchmarks sharply lower Wednesday. The S&P BSE Sensex plummeted 1,628 points to end at 71,501 levels, while the Nifty50 shut shop at 21,572, lower by 460 points.

Both the benchmarks settled over 2 per cent lower each as against a 1 per cent cut in the BSE MidCap index, and 0.9 per cent fall in the BSE SmallCap index. Volatility gauge, India VIX, soared over 11 per cent.

HDFC Bank plunged over 8 per cent today, followed by Tata Steel, Kotak Bank, Axis Bank, ICICI Bank, Bajaj Finserv, JSW Steel, SBI, Bajaj Finance, Tata Motors, Asian Paints, M&M, IndusInd Bank, Maruti Suzuki, ITC, and Reliance Industries (0.8 per cent). 

Among sectors, the Nifty Bank, Financial Services, and Private Bank indices declined over 4 per cent each. The Nifty Metal index tumbled 3 per cent, and the Nifty PSU Bank index 1.7 per cent. The Nifty IT index, on the other hand. advanced 0.65 per cent. 

4:00 PM

Tech View :: 'Drop below 45,900 could initiate a correction towards 45,500'

Bank Nifty experienced a sharp decline on the back of sell off in the heavyweight HDFCBANK. The index sharply fell below the 38.20% Fibonacci Retracement level of the previous leg of rally (from 43,230 to 48,347).

Additionally, the index retreated within the area of the previous swing high after a consolidation breakdown on the daily chart.

The sentiment may remain weak with immediate support at 45,900-45,930.

A drop below 45,900 could potentially initiate a further correction towards 45,500. On the upside, resistance is identified at 46,350.

Views by: Rupak De, Senior Technical Analyst at LKP Securities

3:52 PM

Currency outlook :: 'US retail sales data could be the next trigger'

Rupee traded flat in range of 83.10-83.16 with dollar index rising and sell off in capital markets rupee weakness can continue towards 83.25-83.30. US RETAILS data will be in focus in evening which can give dollar new triggers. Range for rupee can be seen between 82.90-83.3

Views by: Jateen Trivedi, VP Research Analyst, LKP Securities

3:51 PM

Tech View :: 'Sentiment could potentially deteriorate if Nifty drops below 21,550'

Nifty witnessed a significant decline driven by profit-taking following its record high of 22,124 in the previous trading session.

Wednesday's profit booking led the index to the 21-day Exponential Moving Average, a crucial short-term moving average.

Sentiment could potentially deteriorate further if Nifty drops below 21,550, where the 21-EMA is situated.

On the downside, a breach of 21,550 may result in the index descending towards 21,350. Conversely, on the upside, resistance is observed at 21,650.

Views by: Rupak De, Senior Technical  Analyst, LKP Securities

3:43 PM

Comment :: What triggered correction in markets on Jan 17?

A nosedive correction in banking stocks, along with concerns over delays in US FED rate cuts, impacted market sentiments.

The addition of discouraging Chinese growth data and rising US bond yields, also resulted in widespread profit-booking.

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.

Views by: Vinod Nair, Head of Research, Geojit Financial Services.

3:41 PM

Currency check :: Rupee ends 6 paise weaker at 83.136/$

3:41 PM

Broader markets outperform benchmarks; MidCap, SmallCap indices slip 1% each

3:38 PM

Nifty Heatmap :: IT stocks buck trend, HDFC Bank slides 8%

3:37 PM

Closing Bell :: Nifty ends near 21,550

3:36 PM

Closing Bell :: Sensex tanks over 1,600 pts

3:29 PM

Q3 results :: Som Distilleries posts profit of Rs 18 crore

>> Ebitda at Rs 31.8 crore

>> Ebitda margin at 6.36%

>> All numbers beat estimates

3:14 PM

ALERT :: BEL receives orders worth Rs 1,034.31 crore

2:55 PM

Q3 results :: Asian Paints posts net profit of Rs 1,475 crore

>> Ebitda at Rs 2,056 crore, beats estimate

>> Ebitda margin at 22.59%, bets estimate

2:46 PM

ALERT :: Shakti Pumps invests Rs 13.6 crore in Shakti EV Mobility

>> The consolidated investment is Rs 26.92 crore after subscribing equity shares at Rs 10 per share

2:29 PM

Market view: 'Disconnect between price and value may sustain for a while'

"The Indian economy’s reasonable macroeconomic fundamentals, with solid growth and external position and improving inflation and fiscal deficit, the Indian market’s strong earnings growth prospects over FY2024-26E  and likely decline in global interest rates may result in the large disconnect between price and value across sectors and stocks sustaining for a while," said Sanjeev Prasad of Kotak Institutional Equities. READ MORE

2:11 PM

Stock market crash: Here's what sent Sensex, Nifty into free fall on Jan 17

Bets of higher rate cuts wane: Fed governor Christopher Waller on Tuesday said the central bank should take a cautious approach to cutting rates. This was seen as a push back against expectations for as many as six rate cuts this year. US 10 year yield popped above 4 per cent overnight as US stock indices logged losses of up to 0.6 per cent. READ MORE