D-Street Bloodbath: Triggers That Dragged Market in Red, Nifty Below 18,100

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D-Street Bloodbath: Triggers That Dragged Market in Red, Nifty Below 18,100
Credit: © Reuters.

By Malvika Gurung

Investing.com -- The domestic market witnessed sharp sell-offs in Friday’s trade amid weak global cues, while financial heavyweights HDFC twins dragged the market significantly during the session, pulling the benchmark indices over 1% lower each.

Headlines Nifty50 fell 1.02% to 18,069 levels and Sensex plunged 694.96 points or 1.13% at Friday’s close. The market volatility barometer India VIX ended 4.8% higher at 12.3 levels.

Dalal Street registered its steepest single-day fall in two months on Friday due to a sharp dive in the shares of HDFC (NS: HDFC ) and HDFC Bank (NS: HDBK ), along with weak cues from global peers after the European Central Bank hiked rates and indicated further rate hike needs, along with rising fears of a worsening US banking sector, especially after the collapse of PacWest Bancorp (NASDAQ: PACW ).

HDFC twins tanked 6% each on Friday, on reports that MSCI will include the merged entity of HDFC and HDFC Bank under its large-cap index post-merger, but with an adjustment factor of 0.5, which would result in an outflow of $150-$200 million.

Banking and financial sectors exerted pressure on the Indian market in Friday’s trade, as the Nifty Private Bank index tumbled nearly 3%, while Nifty Bank and Nifty Financial Services plunged over 2% each.

In a note provided to Investing.com, Vinod Nair, Head of Research at Geojit Financial Services, said, “The Indian market was dragged down by heavy selling in HDFC twins on fears of post-merger fund outflow. In addition, the cues from global peers were lacklustre as the ECB raised rates by 25bps and signalled the need for further rate hikes.”

Key US contracts Dow Futures gained 0.43% and Nasdaq 100 Futures surged 0.65%.

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  • Ravi Mehra @Ravi Mehra
    Our news channels plays important role to make fool the new retail investers with two slogans. Buy the dip when the market goes down & again buy when the market goes up. In both situations the retailers are always trapped because they never have the capacity to hold the stocks in downtrend.
    Like 0
  • Sridhar N Rao @Sridhar N Rao
    Pumping over; Dumping started!
    Like 3
  • balwinder singh @balwinder singh
    ek din share ka price up kro dusre din sell ke down kro, logon ka paisa lutto
    Like 12
    • Ruksh Solanki @Ruksh Solanki
      @balwinder singh this is the game bro$ No matching items found Send Feedback
      Like 0
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