Indian benchmark indices, Sensex and Nifty, extended their decline for a second day, heavily influenced by HDFC Bank's underwhelming quarterly earnings and heightened geopolitical tensions in West Asia, reinforcing a cautious market sentiment.
Key Points
- Indian benchmark indices, Sensex and Nifty, recorded a second consecutive day of losses.
- HDFC Bank's disappointing quarterly earnings, particularly on the margin front, was a significant factor in the market decline.
- Escalating US-Iran conflict and rising crude oil prices contributed to a risk-off sentiment among investors.
- Foreign Institutional Investors (FIIs) continued to offload equities, with outflows of Rs 1,121.04 crore on Monday.
- Global oil benchmark Brent crude climbed to $90.03 per barrel, further impacting market sentiment.
Benchmark indices Sensex and Nifty ended lower on Tuesday as HDFC Bank dragged the markets for a second day after the lender's quarterly earnings disappointed on the margin front.
Factors Behind the Market Dip
Besides, escalating US-Iran conflict, uptick in crude oil prices and persistent foreign fund outflows also reinforced a risk-off sentiment in the markets.
The 30-share BSE Sensex declined 238.41 points, or 0.31 per cent, to settle at 77,470.11. During the day, it dropped 371.19 points, or 0.47 per cent, to 77,337.33.
The 50-share NSE Nifty edged lower by 50.80 points, or 0.21 per cent, to end at 24,187.70.
Top Performers and Laggards
From the Sensex pack, HDFC Bank declined for the second day, down 2 per cent.
Reliance Industries, State Bank of India, Tata Consultancy Services, Infosys and Power Grid were also among the laggards.
Bajaj Finserv, InterGlobe Aviation, UltraTech Cement, HCL Tech, Mahindra & Mahindra and Titan were among the winners.
Global Market Overview and FII Activity
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 1,121.04 crore on Monday, according to exchange data.
Brent crude, the global oil benchmark, climbed 0.66 per cent to $90.03 per barrel.
In Asian markets, South Korea's KOSPI rebounded by 3.56 per cent, Japan's Nikkei 225 climbed 3.26 per cent and Shanghai's SSE Composite index went up by 1.79 per cent, while Hong Kong's Hang Seng index ended marginally lower.
