Stock Market Today: BSE Sensex, Nifty50 crash as banking stocks bleed Dalal street | India Business News

Stock market today: BSE Sensex plunged as much as 1100 points in opening trade on Wednesday. The broader 50 share index, Nifty50, was also down almost 400 points in early morning trade. The stock market blood bath was led by banking stocks which were majorly in red. HDFC Bank tanked as much as 7% post its Q3 results that were announced yesterday.
Indian benchmark equity indices continued their downward trend for the second consecutive day following negative cues from global markets.At around 10:01 AM, the BSE Sensex was trading 852 points or 1.16% lower at 72,277, while the Nifty50 was down 245 points or 1.11% at 21,787.
Furthermore, the market capitalisation of all listed companies on BSE decreased by Rs 1.91 lakh crore to Rs 373.04 lakh crore, according to an ET report.
HDFC Bank witnessed a decline of 6.5% in early trade after reporting a 34% year-on-year rise in net profit at Rs 16,372.54 crore in Q3 FY24. Although its net interest income increased by 24% YoY, it fell short of expectations.
Other banking stocks in the BSE Sensex pack, such as Axis Bank, ICICI Bank, Kotak Bank, SBI, and IndusInd Bank, also experienced declines of up to 2%.
From the sectoral perspective, Nifty Bank and Nifty Financial witnessed declines of over 2%, while Nifty Metal, Realty, Auto Media, and Healthcare fell between 0.3% to 1.8%.
Several factors contributed to this market crash:
1. Dollar strengthens: The dollar index, which measures the value of the US dollar against a basket of currencies, reached a one-month high. This increase in the dollar’s value makes commodities, including crude oil, more expensive. As a result, India’s import costs rise, leading to a wider current account deficit.
2. Asian markets slump: Asian equities, particularly Chinese stocks, experienced a significant decline. This was driven by data indicating a patchy recovery in the Chinese economy. China’s economy grew by 5.2% in the fourth quarter, falling short of analysts’ expectations. As a result, China’s blue-chip stock index dropped by more than 1%, while Hong Kong’s Hang Seng index slumped 2.5%.
3. Rise in 10-year Treasury yield: The 10-year Treasury yield, which reflects long-term borrowing costs, increased to 4.052%. This rise in yield is a response to concerns that the expected rate cuts by the US Federal Reserve may not materialise. The market had anticipated five or six rate cuts in 2024, but indications suggest that the Fed is unlikely to cut rates in March.

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