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Business News/ Markets / Stock Markets/  Stock market today: Nifty 50, Sensex suffer biggest single-day loss since June 2022; investors lose nearly 5 lakh crore
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Stock market today: Nifty 50, Sensex suffer biggest single-day loss since June 2022; investors lose nearly ₹5 lakh crore

Stock market today: Nifty 50 plunged 460 points, or 2.09 per cent, to close at 21,571.95 while the Sensex suffered a loss of 1,628 points, or 2.23 per cent, to settle at 71,500.76.

Stock market today: Nifty 50 closed at 21,571.95 while the Sensex settled at 71,500.76 on Wednesday. AFP PHOTO/Ralphson DAVID (AFP)Premium
Stock market today: Nifty 50 closed at 21,571.95 while the Sensex settled at 71,500.76 on Wednesday. AFP PHOTO/Ralphson DAVID (AFP)

Stock market today: Equity benchmarks the Nifty 50 and the Sensex suffered their biggest single-day percentage loss since June 2022 on Wednesday, January 17, predominantly triggered by a substantial decline in HDFC Bank's share price, a day after the company reported its December quarter results. 

HDFC Bank share price plunged over 8 per cent on Wednesday even as the bank reported in-line Q3 numbers. Analysts pointed out that investors appear to be concerned about the Q3 margins which came largely flat.

Also Read: HDFC Bank share price cracks 8% after Q3 results; what should investors do?

The poor performance of HDFC Bank's share price sent shockwaves through the market, precipitating a ripple effect that impacted various other banking stocks. Nifty Bank concluded the day with a steep decline of over 4 per cent, as every constituent found itself in negative territory. This was the biggest single-day percentage fall of the Nifty Bank index since March 7, 2022.

Nifty 50 opened at 21,647.25 against the previous close of 22,032.30 and touched the intraday low of 21,550.45 during the session. The index finally closed with a loss of 460 points, or 2.09 per cent, to close at 21,571.95.

The Sensex opened at 71,998.93 against the previous close of 73,128.77 and touched its intraday low of 71,429.30. The index closed with a loss of 1,628 points, or 2.23 per cent, at 71,500.76.

Also Read: Nifty 50 drops over 2%, Sensex tumbles 1,600 points: 5 key reasons why Indian stock market fell today

This was the biggest single-day fall of the Nifty 50 and the Sensex in percentage terms. 

On June 13, 2022, Nifty 50 had fallen 2.64 per cent and Sensex had suffered a loss of 2.68 per cent.

Mid and small-cap indices also incurred losses, but their declines were less pronounced compared to the benchmarks. The BSE Midcap index closed 1.09 per cent lower, while the BSE Smallcap index concluded with a 0.90 per cent decrease.

The overall market capitalisation of the firms listed on the BSE dropped to nearly 370 lakh crore from nearly 375 lakh crore in the previous session, making investors poorer by about 5 lakh crore in a single session.

Top Nifty 50 gainers today

Shares of Apollo Hospitals Enterprise (up 1.28 per cent), HCL Technologies (up 1.13 per cent) and Tech Mahindra (up 0.95 per cent) closed as the top gainers in the Nifty 50 index.

Some 10 stocks closed in the green in the Nifty 50 index and 39 stocks suffered losses. One stock - Power Grid Corporation of India - ended flat in the Nifty 50 pack.

Top Nifty 50 laggards today

Shares of HDFC Bank (down 8.16 per cent), Tata Steel (down 3.97 per cent) and Kotak Mahindra Bank (down 3.76 per cent) closed as the top laggards in the Nifty 50 pack.

Also Read: Top Gainers and Losers today on 17 January, 2024: HCL Technologies, SBI Life Insurance Company, HDFC Bank, Tata Steel among most active stocks; Check full list here

Sectoral indices today

Barring Nifty IT (up 0.64 per cent), all sectoral indices ended with losses with Nifty Bank and Financial Services indices falling 4.28 per cent each.

Nifty Private Bank index plunged 4.23 per cent and the Nifty Metal index Suffered a loss of 3.13 per cent.

Expert's view on markets

"A nosedive correction in banking stocks, along with concerns over delays in US Fed rate cuts, impacted market sentiments. The addition of discouraging Chinese growth data and rising US bond yields also resulted in widespread profit-booking. Given the elevated valuations, coupled with the fact that optimism regarding earnings and GDP growth for FY24 is already reflected in the market, triggered the correction," said Vinod Nair, Head of Research, Geojit Financial Services.

Technical views on Nifty 50

Jatin Gedia, a technical research analyst at Sharekhan by BNP Paribas pointed out that Nifty witnessed a decisive break below the 20-day moving average (21,629) which is a sign of weakness.

The daily momentum indicator has triggered a negative crossover which is a sell signal. Thus, both price and momentum indicators are pointing toward weakness.

"The ideal strategy to trade this fall would be to sell on the rise near the resistance zone (21,800 – 21,820). On the downside, we expect the Nifty to target levels of 21,167 which is the 40-day moving average and below that, it can slip to 20,870 which is the 38.2 per cent Fibonacci retracement level of the rise the Nifty witnessed from 18,837 – 22,124," said Gedia.

Read all market-related news here

Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.

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Published: 17 Jan 2024, 03:30 PM IST
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