A sea of ​​blood on D Street! Sensex plunges 695 points on sale of HDFC twins

Indian stock indexes closed lower on Friday, with the BSE Sensex plunging 695 points or 1.13 percent and its NSE counterpart, the Nifty50, falling below 18,100 amid HDFC’s double slump.

The Dalal Road disaster today reduced the market capitalization of all BSE-listed companies from Rs 1.43 lakh to Rs 273.77 lakh.

Looking at the Sensex sector, HDFC Bank and HDFC were the biggest losers, each down more than 5.5% as their merger could lead to modest outflows of $150 million to $200 million. IndusInd Bank, Tata Steel, Kotak Bank, M&M and Banj Finserv also closed in the red.

Meanwhile, Titan, Ultratech Cement, Maruti, Nestle, ITC and L&T closed higher.

Commonwealth Bank shares closed down more than 8 per cent following the release of its fourth-quarter results. Manappuram Finance closed down more than 11 percent after the ED froze promoters’ assets.

By sector, Nifty Pvt Bank fell 2.82 percent and Nifty Financial Services fell 2.34 percent. Nifty Metal and Nifty IT also closed lower. Among the broader market, the Nifty Midcap 100 fell 0.70 percent and the Smallcap 50 lost 0.82 percent.

Global Market
Global stocks were broadly higher ahead of Friday’s U.S. jobs data, amid concerns over the health of banks under pressure from rising interest rates. Futures rose in London, Frankfurt, Hong Kong and Wall Street. Shanghai refused. Markets in Japan and South Korea were closed for public holidays. Crude oil prices rose.

In early trade, London’s FTSE 100 rose 0.4% to 7,733. Frankfurt’s DAX rose 0.3% to 15,785, while Paris’ CAC 40 rose 0.4% to 7,368.

On Wall Street, benchmark S&P 500 futures rose 0.3%. The Dow Jones Industrial Average rose 0.1%.

Expert Opinion
According to Vinod Nair, head of research at Geogit Financial Services, the Indian market has been dragged down by a massive sell-off of the HDFC twins amid fears of capital outflows following the merger.

“Furthermore, with the ECB raising rates by 25 basis points, signaling the need for further hikes, hints from global peers have been lackluster. We’re already seeing pressure,” Nair said. Add to.

Siddhartha Khemka, head of retail research at Motilal Oswal said: Against the backdrop of weak global cues and profit-taking among index heavyweights. Markets will also take cues next week from inflation, state election results and the ongoing earnings season.

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