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Sensex plunges 1,628 points, Nifty down 2.06 per cent in biggest single day loss since June 2022

The fall in the Sensex and Nifty was primarily triggered by a substantial fall in HDFC Bank's share price.

Edited By: Akshit Tyagi New Delhi Updated on: January 17, 2024 16:25 IST
BSE building
Image Source : PTI (FILE) BSE building

Equity benchmarks, the Nifty 50 and the Sensex, experienced their most significant single-day percentage loss since June 2022 on Wednesday, January 17. This decline was primarily triggered by a substantial fall in HDFC Bank's share price.

The Nifty 50 witnessed a plunge of 454 points, or 2.06 percent, closing at 21,578.40, while the Sensex incurred a loss of 1,628 points, or 2.23 percent, settling at 71,500.76. The negative sentiment was driven by the notable drop in HDFC Bank's stock, contributing to the overall market decline.

Key stock indices experienced their worst single-day losses in percentage terms since June 13, 2022. The sharp market decline followed a recent record-breaking rally, with the BSE benchmark reaching an all-time high of 73,427.59 and the Nifty hitting its lifetime peak of 22,124.15. HDFC Bank, among the Sensex firms, saw a decline of over 8 percent after its December quarter earnings failed to meet investor expectations.

HDFC Bank reported a 2.65 percent rise in consolidated net profit for the October-December period, but concerns over elevated credit/deposit (CD) ratios beyond the RBI's comfort levels impacted market sentiments.

Other major laggards included Tata Steel, Kotak Mahindra Bank, Axis Bank, ICICI Bank, JSW Steel, Bajaj Finserv, Maruti, IndusInd Bank, and State Bank of India.

On the positive side, gainers included HCL Technologies, Infosys, Tech Mahindra, Tata Consultancy Services, Nestle, and Larsen & Toubro. The market correction was attributed to concerns about delays in US Federal Reserve rate cuts and the correction in banking stocks, particularly after HDFC Bank's results.

In Asian markets, Seoul, Tokyo, Shanghai, and Hong Kong settled lower, while European markets were also trading with sharp cuts.

The US markets ended in negative territory on Tuesday. The BSE benchmark declined 199.17 points, or 0.27 percent, settling at 73,128.77, and the Nifty ended lower by 65.15 points, or 0.29 percent, at 22,032.30.

The decline was seen as a breather after the recent significant upmove, with market valuations higher than historical multiples. Global oil benchmark Brent crude declined to USD 76.85 a barrel. Foreign Institutional Investors (FIIs) bought equities worth Rs 656.57 crore on Tuesday.

(With PTI inputs)

READ MORE: Why did Sensex fall over 1,600 points, Nifty below 22,000 after hitting record highs?

READ MORE: HDFC Bank shares fall 7 per cent post Q3 earnings; market cap erodes by Rs 72,736 crore

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