Sensex falls 443 points as HDFC Bank, Axis Bank drag markets

The Sensex and Nifty closed lower on Monday as sharp losses in HDFC Bank and Axis Bank, coupled with concerns over escalating US-Iran tensions, weighed on investor sentiment. Banking stocks led the decline despite gains in select blue-chip counters

Mumbai: Benchmark indices Sensex and Nifty closed lower on Monday, dragged down by heavy selling in blue-chip banking stocks HDFC Bank and Axis Bank amid margin-related concerns and escalating US-Iran tensions.

The 30-share BSE Sensex declined 442.93 points, or 0.57 per cent, to settle at 77,708.52. During the day, it fell 783.16 points, or 1 per cent, to 77,368.29.

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The 50-share NSE Nifty edged lower by 95.80 points, or 0.39 per cent, to end at 24,238.50.

Among Sensex shares, Axis Bank was the biggest loser, dropping 5.48 per cent after announcing its quarterly results over the weekend. HDFC Bank declined 5.12 per cent.

“HDFC Bank has disappointed, particularly on the NIM front,” V K Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said.

Maruti, Kotak Mahindra Bank, Infosys, Tata Consultancy Services, Mahindra & Mahindra and Bharat Electronics were also among the laggards in the blue-chip pack.

Trent, Power Grid, NTPC and Bharti Airtel were among the gainers.

“Indian equity markets ended in the red as investors turned cautious amid escalating tensions in the Middle East and a global technology-led sell-off. Losses were compounded by a sharp decline in HDFC Bank after weaker-than-expected net interest margins disappointed investors, putting additional pressure on the banking sector and the broader benchmarks,” Ponmudi R, CEO of Enrich Money, an online trading and wealth tech firm, said.

The global oil benchmark, Brent crude, receded from an early high of USD 90 per barrel and was later trading 0.05 per cent lower at USD 88.06 per barrel.

“The collapse of the June ceasefire between the US and Iran has pushed crude prices to touch USD 90 a barrel. Markets have started the week on a cautious note, reflecting rising pressure on the global economy. These tensions are expected to persist in the near term as US military actions expand and global travel advisories for US citizens remain in place,” Vinod Nair, Head of Research, Geojit Investments Limited, said.

In Asian markets, Shanghai’s SSE Composite Index and Hong Kong’s Hang Seng Index ended higher, while South Korea’s KOSPI tanked 4.46 per cent. Markets in Japan were closed for a holiday.

European markets were trading mostly higher, while US markets had ended lower on Friday.

Foreign Institutional Investors (FIIs) offloaded equities worth Rs 376.41 crore on Friday, according to exchange data.

On Friday, the Sensex bounced back 964.58 points, or 1.25 per cent, to settle at 78,151.45. The Nifty climbed 261.55 points, or 1.09 per cent, to end at 24,334.30.