Mkts extend losses for second day dragged by HDFC Bk, W Asia crisis

PTI mumbai

Benchmark indices Sensex and Nifty closed lower on Tuesday, dragged by selling in HDFC Bank for the second day alongside a risk-off sentiment amid the escalating West Asia crisis.  

Falling for the second day, the 30-share BSE Sensex declined 238.41 points, or 0.31%, to settle at 77,470.11, with nine of its constituents closing lower and 21 with gains. During the day, it dropped 371.19 points, or 0.47%, to 77,337.33. 

The 50-share NSE Nifty dropped by 50.80 points, or 0.21%, to end at 24,187.70. 

The escalating US-Iran conflict, an uptick in crude oil prices, and persistent foreign fund outflows reinforced a risk-off sentiment in stock markets, experts said. 

From the Sensex pack, HDFC Bank declined for the second day, down 2%, after the lender's quarterly earnings disappointed on the margin front. 

Among others, Reliance Industries dropped 1.48%, State Bank of India by 1.48%, Tata Consultancy Services by 1.32%, Infosys by 1.24%, and Trent by 1.1%. 

On the other hand, Bajaj Finserv emerged as the biggest gainer, rising by 2.07%. InterGlobe Aviation, UltraTech Cement, HCL Tech, Mahindra & Mahindra, and Titan were also among the winners. 

"Indian equity markets ended lower as investors remained risk-averse amid escalating geopolitical tensions in the Middle East. On the domestic front, losses in Banking and Financials, driven by HDFC Bank's post-earnings decline, outweighed stock-specific gains elsewhere, weighing on the benchmark indices," said Ponmudi R, CEO of Enrich Money, an online trading and wealth tech firm. 

"Despite geopolitical challenges, midcaps are performing well in anticipation of strong corporate earnings, supported by demand-led business updates," said Vinod Nair, Head of Research, Geojit Investments Limited.

Among sectors, public sector banks declined by 0.82%, followed by focused IT (0.68%), IT (0.66%), top 10 banks (0.52%), energy (0.44%), and financial services (0.22%).