Mumbai : Domestic Index Sensex plunged 1628 points or 2.23 per cent on Wednesday to register the worst fall in 18 months mainly due to intense sell-off in Banking, Metal and Oil shares amidst weak Global trends.
The 30-share BSE Sensex fell 1628.01 points or 2.23 per cent to settle at 71,500.76 with as much as 24 of its constituents ending in the red. During the day, it dropped 1699.47 points or 2.32 per cent to a low of 71,429.30.
On the other hand, Nifty dwindled 460.35 points or 2.09 per cent to settle at 21,571.95 registering a fall for the second day in a row.
In the Banking sector, HDFC shares declined 8 per cent and Nifty Bank crashed over four per cent and this had a spillover effect on other Banking stocks. Kotak Mahindra Bank, ICICI Bank, IDFC First Bank, Axis Bank, Federal Bank and AU Small Finance Bank fell between 2 to 4 per cent each.
HDFC shares declined as the investors were disappointed with flat Net Interest Margin (NIM) at 3.4 per cent in spite of wearing away of the ICRR impact and draw-down of some surplus liquidity.
Other financial stocks and PSU Banks also fell under bear pressure even as metal stocks plunged on demand concerns from China.
The impact of sell-off was also felt in smaller stocks in mid and smallcap indices falling one per cent each.
However, Nifty IT remained unaffected as the results of software exporters gave the bulls enough hope of a turnaround in 2024.
Experts said that investors have a positive outlook towards PSU Banks as many of them are likely to post a strong earnings and this they say can propel growth. Among PSU Banks, Bank of India and SBI appear to be the favorites.
Regarding the fall in Sensex and Nifty on Wednesday, experts said in the recent past, the markets had gone up higher and therefore they are now taking respite since valuations are higher than historical multiples.
Gold prices fell Rs 400 to Rs 63,050 per ten grams in Delhi on Wednesday amid weak cues in the overseas market. In the previous trade, the yellow metal had closed at Rs 63,450 per ten grams.
Silver also fell Rs 600 to Rs 75,800 per Kg.
