Market Rollercoaster: HDFC Bank’s Slide and Zee Entertainment’s Plunge
In a day of twists and turns, Indian shares saw an early surge fade away, closing significantly lower. The NSE Nifty 50 settled 1.54% down at 21,238.80 points, while the S&P BSE Sensex lost 1.47%, ending the day at 70,370.55.
HDFC Bank took the lead in the downturn, falling 3.5%, impacting the Nifty index the most and extending its own losses to about 15% since last week’s disappointing results. The selling pressure on HDFC Bank spilled over to other banking majors, casting a shadow on the markets post the lackluster results, according to Ajit Mishra, SVP – Technical Research, Religare Broking.
Twelve out of the 13 major sectoral indexes closed in the red, with financials leading the decline with a 2% slide. This sector, carrying the most weight among others, contributed significantly to the market’s overall downturn.
The market’s rollercoaster ride saw early gains dissipate, succumbing to late-session selling pressure. The day unfolded with the Nifty rising by 0.8% and the Sensex by 0.86%, only to face a downturn later in the session. Amidst this turbulence, Zee Entertainment took a severe hit, plummeting over 32% after the collapse of its merger with Sony’s India unit.
In a nutshell, the market narrative unfolded with HDFC Bank’s stumble, impacting financials and influencing the broader market sentiment, making it a day of notable market fluctuations.
The Indian market faced additional pressure attributed to “long-awaited corrections” in small and mid-cap indexes, as highlighted by Saurabh Jain, Assistant Vice President for Research at SMC Global Securities. Small-caps and mid-caps both witnessed a decline of approximately 3%, marking a departure from their earlier outperformance compared to larger peers. This adjustment reflects a correction in these market segments, aligning with trends observed in the previous year.
In the realm of individual stocks, Zee Entertainment endured a significant setback, plunging more than 32%. This marked its worst performance ever, triggered by the collapse of the broadcaster’s anticipated $10 billion merger with Sony’s local unit. The fallout from this failed merger added to the complexities influencing the market, contributing to a day of notable fluctuations.
