Sensex tanks 587 points; HDFC Bank slumps over 3 per cent

Equity benchmark Sensex tanked 587 points on Monday, tracking heavy losses in HDFC twins, Reliance Industries, and Axis Bank amid a weak trend in global markets.

The 30-share BSE index ended 586.66 points or 1.10 percent lower at 52,553.40, while the broader NSE Nifty fell 171 points or 1.07 percent to 15,752.40.

HDFC Bank was the top loser in the Sensex pack, slumping over 3 percent, followed by IndusInd Bank, Axis Bank, HDFC, Maruti, and Bajaj Finance.

On the other hand, NTPC, Nestle India, Dr. Reddy’s, and Sun Pharma were among the gainers.

Domestic equities fell sharply on weak global cues as concerns over a recent rise in fresh COVID-19 cases in various parts of the world including the US weighed on sentiments, said Binod Modi, Head – Strategy at Reliance Securities.

“Financials have witnessed steeper correction today as subpar performance delivered by HDFC Bank in 1QFY22 and visible deterioration in asset quality created apprehension among investors about banks and NBFCs having exposure in retail and SME.

“Further, auto and metal indices also corrected over 1 percent. Barring realty and pharma, most key sectoral indices witnessed contraction. Profit-booking was visible in mid-cap and small-cap stocks also, while volatility index hardened over 8 percent,” he noted.

On the global front, bourses in Shanghai, Hong Kong, Seoul, and Tokyo ended with heavy losses. Equities in Europe were also in the red in mid-session deals.

Meanwhile, international oil benchmark Brent crude declined 2.28 percent to USD 71.91 per barrel. 

Also Read: Sensex tanks over 500 points in early trade; Nifty slips below 15,800

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