Produced by: Tarun Mishra
Designed by: Mohsin Shaikh
Benchmark indices Sensex and Nifty tumbled more than 1% on Wednesday due to heavy selling in banking and oil stocks, in tandem with weak global trends ahead of the US Federal Reserve's interest rate decision
Falling for the second consecutive day, the 30-share BSE Sensex plummeted 796 points, or 1.18%, to settle at 66,800.84, while the NSE Nifty declined 231.90 points, or 1.15%, to end at 19,901.40
Shares of HDFC Bank closed 3.87% lower after Nomura Holdings Inc downgraded the stock, prompted by the lender's lowered revision of the business absorbed from its parent HDFC as part of the mega merger
Brokerages that participated in HDFC Bank's analyst meeting to discuss the HDFC-HDFC Bank merger and related financial matters expressed some disappointment. They noted a 17% decrease in net worth, primarily attributed to accounting adjustments and policy alignment. These adjustments led to a negative impact on net interest margin (NIM) due to excess liquidity, a decrease in the return on assets (RoA) on a consolidated basis, and an increase in non-performing loans, primarily stemming from HDFC's non-individual loan portfolio. As a result, these brokerages lowered their target prices for the stock
The share price of Reliance Industries (RIL) witnessed a decline of more than 2.5% during Wednesday's trading session. This drop followed reports of a substantial block deal that occurred after the market opened. According to CNBC-TV18, approximately 2 crore shares, equivalent to 0.3% of the company's total shares, were involved in this block deal. The transaction amounted to Rs 4,512 crore in the block deal window
Reliance Industries' shares opened at Rs 2,422.95 apiece on Wednesday, hitting an intra-day low of Rs 2,361.60 and a high of Rs 2,426.40. This marks four consecutive sessions of decline, with a total loss of over 2%
In Wednesday's trading, shares of Kotak Mahindra Bank were valued at Rs 9,494.36 crore. Kotak Mahindra Bank's stock experienced a 0.45 per cent decline, reaching Rs 1,789.50 on the BSE
Kotak Mahindra stock fell as investors perceived Canada Pension Plan Investment Board might pull the plug on its Indian investments amid frosty India-Canada ties over killing of a separatist Sikh leader. The diplomatic tension has led the analysts to believe that the rift between the two countries could cause a destabilisation of economic relations between India and Canada
The Federal Reserve is widely anticipated to maintain current interest rates, yet the US central bank will provide an update on its economic outlook through the summary of economic projections. All eyes will be on Fed chair Jerome Powell's comments and market analysts will parse whether he's hawkish or dovish
Regarding oil prices, Brent crude oil reached over $96 per barrel but has since been trading at around $93 per barrel on Wednesday. Jefferies' analysts suggested that fiscal pressures on the Indian economy are slowly increasing, particularly with oil prices approaching the $100 per barrel mark (Brent)