Sensex Falls Over 400 Points, Nifty Slips Below 24,250 as Private Banks Drag Markets

Indian equities remained under pressure on Monday, with weakness in heavyweight private Banks outweighing selective buying in midcap and public-sector stocks. At around 2:00 pm, the Sensex was trading near 77,745, down 406 points or 0.52 per cent. The Nifty 50 declined about 100 points, or 0.41 per cent, to 24,235 after recovering partially from an Intraday low of 24,150.

The broader market displayed better resilience than the frontline indices. Nifty Bank was the major laggard, falling around 657 points or 1.12 per cent to 57,865. In contrast, the Nifty Midcap 100 gained around 0.45 per cent to 62,710, while the Nifty Smallcap 100 remained almost unchanged near 19,295. The performance suggested that the selling pressure was concentrated in index-heavy private banks rather than across the market.

Among sectors, Nifty PSU Bank advanced around 1.67 per cent, supported by strong quarterly numbers from Punjab National Bank. Nifty Pharma gained about 0.73 per cent as investors sought relatively defensive pockets, while Nifty Metal rose around 0.66 per cent. On the losing side, Nifty Private Bank fell over 2 per cent, Nifty Financial Services declined around 1.29 per cent and Nifty Realty slipped about 0.67 per cent. Concerns over narrowing lending margins remained the key pressure point for private financial stocks.

Stock-specific action was sharp. HDFC Bank fell more than 4 per cent after its June-quarter net interest margin declined to 3.26 per cent, overshadowing steady loan and deposit growth. Axis Bank dropped around 5 per cent as its margin contracted for the fifth consecutive quarter despite a 23 per cent rise in profit.

Punjab National Bank jumped around 5 per cent after net profit surged 214 per cent year-on-year to Rs 5,253 crore, helped by improved asset quality. Himadri Speciality Chemical gained as much as 6.11 per cent and touched a 52-week high after reporting a 27 per cent rise in quarterly profit to Rs 228 crore and announcing capex of around Rs 240 crore.

The latest available institutional data for Friday showed foreign institutional investors selling shares worth a net Rs 376.41 crore. Domestic institutional investors provided support with net purchases of Rs 1,017.89 crore. Provisional figures for Monday will be available after the market closes.

Global cues were unfavourable. The S&P 500 fell 1 per cent, the Dow declined 0.8 per cent and the Nasdaq lost 1.4 per cent on Friday amid selling in technology and Semiconductor stocks. Asian markets were mostly lower, while Brent crude climbed above USD 90 per barrel as the US-Iran conflict raised concerns over supplies through the Strait of Hormuz.

For the near term, traders will watch whether the Nifty can defend the 24,100 to 24,000 support zone. Resistance is placed around 24,350 to 24,500. Crude prices, the rupee, geopolitical developments and the next round of Q1 earnings may determine whether the market stabilises or extends the correction.

Disclaimer: The article is for informational purposes only and not investment advice.