- Indian equities fell; elevated crude, bank earnings weighed.
- Private banks dragged indices; HDFC, Axis missed expectations.
- Elevated crude prices remain concern for India’s economy.
Indian equity benchmarks reversed their recent gains and came under selling pressure on Monday, as elevated crude oil prices and weakness in heavyweight private banking stocks weighed on investor sentiment. The decline gathered momentum during the session following the September-quarter earnings announcements of major lenders.
The BSE Sensex closed at 73,853, bleeding close to 900 points, while the NSE Nifty50 settled under 22,900, taking a hit of more than 250 points.
Stock Market Today: Nifty Slips Below 23,000
The Nifty50 fell below the psychologically important 23,000 mark during intraday trade as selling pressure spread across several sectors. The index was down 152 points, or 0.66%, at the time of the reported market update, while the Bank Nifty declined more than 300 points, or 0.52%.
Market breadth remained weak, with only 18 Nifty50 constituents trading higher against 32 stocks in the red. Across the broader market, 891 stocks advanced, while 2,465 declined, pointing to widespread selling pressure.
HDFC Bank, ICICI Bank And Axis Bank Weigh On Sensex
Private banking stocks emerged as major drags on the benchmarks after investors assessed the latest quarterly earnings and outlook for large lenders.
HDFC Bank, ICICI Bank and Axis Bank together accounted for more than half of the selling pressure in the Sensex, according to the market update. The Nifty Private Bank index also declined 1.7%.
HDFC Bank shares fell nearly 3%. While analysts remained constructive on the lender following better-than-expected earnings, uncertainty around the appointment of a replacement for Deputy Managing Director Kaizad Bharucha remained a near-term concern. Clarity on senior management appointments and leadership changes will be important for the stock, according to the report.
Axis Bank also faced pressure after its September-quarter performance fell short of earnings expectations. Elara Capital said the lender lagged its peers on core fundamentals, contributing to the stock’s decline of around 5%.
Financial Services, FMCG Lead Sectoral Declines
Selling was visible across most sectoral indices during Monday’s session.
The Nifty Financial Services index declined 1.25%, while the Nifty FMCG index dropped 1%. The Nifty PSU Bank index bucked the broader trend, gaining 1.86%.
The broader market also weakened, with the Nifty Midcap 100 falling 0.49% and the Nifty Smallcap 100 declining 0.72%.
Crude Oil Remains Elevated Despite Pullback
Crude oil prices continued to be a key concern for domestic equities, even after retreating from recent levels.
Brent crude futures fell around 2.5% to $107 per barrel during Monday’s trade but remained elevated. Oil prices had surged approximately 11% last week amid tightening supplies and strong demand for shipping fuel.
Iranian strikes on tankers near the Strait of Hormuz disrupted oil flows, adding to concerns over global supply availability.
For India, persistently high crude prices pose macroeconomic risks by increasing the import bill, putting pressure on the current account balance and potentially weighing on the rupee. Investors will continue to monitor energy prices and geopolitical developments for their impact on inflation and corporate profitability.
Disclaimer : This story is auto aggregated by a computer programme and has not been created or edited by DOWNTHENEWS. Publisher: abplive.com
