Sensex plunges 695 pts, Nifty below 18,100 as HDFC twins sink up to 6%

CLOSING BELL: HDFC and HDFC Bank accounted for a loss of 645 points on the BSE benchmark. Broader indices ended with relatively lesser losses of around 0.5 per cent each.

Stock Market Highlights: The key benchmark indices succumbed to heavy selling pressure in index heavyweights – HDFC and HDFC Bank - after report suggested that MSCI has decided to use an adjustment factor of 0.5 while computing the weightage of the merged entity, against expectations of an adjustment factor of 1. 

According to a note by Nuvama Research, global index provider MSCI intends to add the merged entity of HDFC Bank and HDFC to the large cap segment of MSCI Global Standard index with an adjustment factor of 0.5, which could lead to an outflow by foreign portfolio investors (FPIs) worth $150-200 million as against the Street's expectation of an inflow worth $3 billion. READ MORE

The S&P BSE benchmark index, the Sensex, tumbled to a low of 61,002 towards the fag end of the trading session, and finally ended with a significant loss of 695 points at 61,054. The Nifty 50 shed 187 points at 18,069 on Friday.

HDFC and HDFC Bank, down up to 6 per cent each, accounted for a loss of 645 points on the BSE benchmark. IndusInd Bank down 5.5 per cent was the other major loser among the Sensex 30 stocks. Tata Steel, Mahindra & Mahindra, Kotak Bank, Bajaj Finserv, Wipro, Infosys, HCL Technologies and NTPC declined 1-2 per cent each.

On the positive front, Titan advanced over 2 per cent. UltraTech Cement, Maruti, Nestle India, ITC, PowerGrid Corporation and Asian Paints were the other prominent gainers, up over a per cent each.

The broader indices ended with relatively lesser losses. The BSE Midcap index was down 0.5 per cent, while the Smallcap index slipped 0.4 per cent. The overall breadth was negative, with more than 2,000 stocks declining on the BSE, as against 1,500 advancing shares.

Among individual stocks, Manappuram Finance extended losses and shed another 10.8 per cent after the Enforcement Directorate (ED) froze Rs 143 crore worth of assets of the firm’s MD and CEO V P Nandakumar in an ongoing money laundering investigation. READ MORE

 

3:52 PM

Tech View :: Where is the next support placed on Nifty Bank after HDFC Bank-led sell off?

The Bank Nifty bears took over the control and the index fell by more than 2% breaking the support of the 43,000-42,800 zone. The index if sustained below 43000 will witness further correction towards the 42,500-42,300 zone where the next demand area is visible. The upside resistance of 43,000 if taken out decisively will lead to further short covering toward 43,300 levels.

Views by: Kunal Shah, Senior Technical & Derivatives Analyst at LKP Securities.

3:50 PM

Comment :: Why did Sensex shed 700 pts today?

The Indian market was dragged down by heavy selling in HDFC twins on fears of post-merger fund outflow. In addition, the cues from global peers were lacklustre as the ECB raised rates by 25bps and signalled the need for further rate hikes. Wall Street has witnessed prolonged selling pressure due to apprehensions in the banking sector about the strength of regional banks.

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

3:46 PM

BSE Stats :: Over 2,000 stocks decline on the BSE vs 1,500 advances

3:45 PM

Buzzing stocks :: RVNL jumps 10% in fag-end on heavy volume

3:44 PM

Buzzing stocks :: Manappuram Finance extends slide even as it clarifies on ED raids

3:43 PM

Buzzing stock :: Federal Bank crashes 8% as NII, NIM weaken in Q4

3:42 PM

Buzzing stocks :: TVS Motor Company rallies 4% post healthy Q4 results

3:40 PM

Buzzing stocks :: HDFC Bank plummets nearly 6% as MSCI reduces adjustment weight

MSCI has decided to use an adjustment factor of 0.5-times while computing the weightage of the merged entity, against expectations of an adjustment factor of 1-times. 

This could lead to an outflow by foreign portfolio investors (FPIs) worth $150-200 million as against the Street's expectation of an inflow worth $3 billion.

3:38 PM

Broader markets drop, but outshine benchmarks

3:36 PM

Sectoral trends :: Nifty Bank, Financial Services indices decline 2%

3:34 PM

Sensex Heatmap :: HDFC Bank, HDFC tank up to 6%, IndusInd, Tata Steel other top laggards

3:33 PM

CLOSING BELL :: Nifty ends below 18,100

3:32 PM

CLOSING BELL :: Sensex sinks nearly 700 pts as HDFC twins bleed

3:24 PM

Sebi prescribes additional disclosures for issuing transition bonds

The markets regulator has asked companies to identify interim targets like the number of emissions the issuer is planning to reduce, project implementation strategy, technology for implementation, and the mechanism to oversee the utilisation of the funds raised through transition bonds. READ MORE

3:09 PM

ALERT :: Sensex hits day's low