In a significant downturn, the Indian stock market experienced another day of substantial losses on Wednesday, with the key equity benchmarks facing a notable decline. The market’s downward trajectory was influenced by a major selloff, primarily led by a sharp fall in banking stocks. HDFC Bank, in particular, witnessed a significant drop of over 5% following the release of its December quarter earnings.
The Nifty struggled to stay above the 21,600 mark, and apart from the Nifty IT index, all other sectorial indices on the NSE concluded the day in the red. The S&P BSE Sensex, the barometer index, tumbled 1,628.01 points or 2.23%, closing at 71,500.76. The Nifty 50 index also experienced a decline, losing 460.35 points or 2.09%, ending the day at 21,571.95.
In this market scenario, the IPO of Medi Assist Healthcare Services witnessed robust demand, being subscribed 15.12 times. The IPO, open for bidding since January 15, is set to close on January 17. The market participants are showing keen interest in this offering with a price band fixed at Rs 397-418 per share.
Buzzing Index and Banking Sector:
The Nifty Bank index faced a sharp decline of 4.28%, closing at 46,064.45. HDFC Bank, Kotak Mahindra Bank, IDFC First Bank, Axis Bank, and ICICI Bank were among the top losers, with HDFC Bank taking the lead with an 8.46% drop. This substantial fall in banking stocks contributed significantly to the overall market sell-off.
Stocks in Spotlight:
- L&T Technology Services: The company recorded a 3.67% increase as its consolidated net income rose by 6.6% in Q3 FY24 compared to the previous quarter.
- Karnataka Bank: The bank shed 0.70% following its strategic digital co-lending partnership with Clix Capital focused on providing loans to the Indian MSME sector.
- Network18 Media & Investments: The media company locked in an upper circuit of 10% despite its consolidated net loss widening to Rs 58 crore in Q3 FY24. Revenue from operations declined by 4.11%.
- PTC Industries: The stock rallied 2.99% after its subsidiary Aerolloy Technologies signed a multi-year agreement with Dassault Aviation for the supply of Titanium casting parts made in India.
- Rail Vikas Nigam: The firm surged 7.49% after forming a joint venture with Jakson Green named JGPL-RVNL EPC for green clean energy projects.
- ICICI Lombard General Insurance Company: The insurance company jumped 5.99% as its net profit increased by 22.38% in Q3 FY24 compared to the same quarter last year.
- C.E. Info Systems: The company declined 2.18%, reporting a 5% growth in consolidated net profit and a 36% increase in revenue from operations in Q3 FY24.
Global Markets and Economic Data:
Global markets, both in Europe and Asia, faced declines on Wednesday, with attention centered on the ongoing World Economic Forum in Davos, Switzerland. China’s economic growth for the October to December period of 2023 was reported at 5.2%, contributing to global market sentiments.
In the U.S., markets dropped on Tuesday, influenced by rising bond yields and ongoing scrutiny of fourth-quarter earnings. Federal Reserve Governor Christopher Waller’s remarks indicating a potentially slower pace of monetary policy easing also impacted market dynamics.
