Markets still in the red on selling pressure in HDFC Bank stocks

Benchmark indices Sensex and Nifty fell for the third day running on Thursday, dragged by continuous selling in HDFC Bank and profit-taking in consumer durables and utility shares.

The 30-share BSE Sensex fell by 313.90 points or 0.44 per cent to settle at 71,186.86. During the day, it tanked 835.26 points or 1.16 per cent to 70,665.50.

The Nifty declined 109.70 points or 0.51 per cent to 21,462.25. During the day, it plunged 286.4 points or 1.32 per cent to 21,285.55.

The heavy fall in the markets comes on the back of a recent record-breaking rally. The BSE benchmark hit an all-time high of 73,427.59 on Tuesday, and the Nifty also reached its lifetime peak of 22,124.15 the same day.

Among the Sensex firms, HDFC Bank, NTPC, Asian Paints, Power Grid, Titan, IndusInd Bank, Nestle and Maruti were the major laggards.

HDFC Bank fell over 3 per cent, extending its previous days' huge fall, after the company's December quarter earnings failed to impress investors. The private lender alone contributed 305 points to the fall.

Sun Pharma, Tech Mahindra, Tata Motors, Mahindra & Mahindra, Axis Bank and Larsen & Toubro were among the gainers.

In Asian markets, Tokyo settled lower while Seoul, Shanghai and Hong Kong ended in the positive territory.

European markets were trading on a mixed note. The US markets ended lower on Wednesday.

Foreign Institutional Investors (FIIs) offloaded equities worth Rs 10,578.13 crore on Wednesday, according to exchange data.

On Wednesday, the BSE benchmark plunged 1,628.01 points, or 2.23 per cent, to settle at 71,500.76. The Nifty tanked 460.35 points or 2.09 per cent to settle at 21,571.95.

Global oil benchmark Brent crude climbed 0.50 per cent to $78.27 a barrel.

Rupee gains

Mumbai,The rupee appreciated 2 paise to settle at 83.12 (provisional) against the US dollar on Thursday, tracking a weak American currency against major rivals overseas.

A weak trend in domestic equity markets and rising crude oil prices kept the movement of the domestic currency restrcited, forex traders said.

At the interbank foreign exchange, the domestic currency opened at 83.16 and traded in the range of 83.10 to 83.18 against the greenback. The unit finally settled at 83.12 against the dollar, registering a gain of 2 paise over its previous close.

On Wednesday, the rupee settled 2 paise lower at 83.14 against the US dollar.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.15 per cent lower at 103.05 on Thursday.

Analysts said the dollar retreated after the US data released on Wednesday showed increased retail sales in the country, reflecting sustained economic growth and dashing the financial market's hope of an interest rate cut by the Federal Reserve.

"US dollar softened today on positive global markets. US retail sales and industrial production data topped forecasts, which trimmed rate cut expectations by the Fed in March 2024," said Anuj Choudhary, Research Analyst at Sharekhan by BNP Paribas.

He said the rupee is expected "to trade with a slight negative bias on weak domestic markets due to an extended sell-off and a rise in crude oil prices due to the escalation of tensions in the Middle East".

"USD-INR spot price is expected to trade in a range of Rs 82.90 to Rs 83.50," Choudhary added.

Brent crude futures, the global oil benchmark climbed 0.50 per cent to $78.27 a barrel.

Oil up

Crude oil futures on Wednesday declined 0.92 per cent to Rs 5,948 per barrel as participants trimmed their positions on low demand.

On the Multi Commodity Exchange, crude oil for January delivery fell Rs 45 or 0.92 per cent to Rs 5,948 per barrel with a business volume of 4,874 lots.

Globally, West Texas Intermediate crude oil traded 1.75 per cent lower at USD 71.13 per barrel, while Brent crude climbed 0.50 per cent to USD 78.27 a barrel.

Gold rises

Gold prices on Thursday rose Rs 130 to Rs 61,635 per 10 grams in futures trade as speculators created fresh positions on a firm spot demand.

On the Multi Commodity Exchange, gold contracts for February delivery traded higher by Rs 130, or 0.21 per cent, at Rs 61,635 per 10 grams in a business turnover of 7,034 lots.

Fresh positions built up by participants led to a rise in gold prices, analysts said.

Globally, gold futures increased by 0.37 per cent to $2,014.00 per ounce in New York.