Stock Market Today: Sensex Sinks 1,628 Points; Nifty Ends Below 21,600. HDFC Bank Dives 8 Per Cent

Stock update: On the 30-share Sensex platform, HDFC Bank was the prime loser, down 8.46 per cent. Tata Steel, Kotak Bank, Axis Bank, ICICI Bank, JSW Steel emerged losers

Bloodbath at D-Street on Wednesday. The two key equity benchmarks, Sensex and Nifty, plunged sharply following weak global sentiment and hammering of bank stocks. The S&P BSE Sensex tanked 1,628 points to end at 71,501. On the other hand, the NSE Nifty50 closed at 21,572, down 460 points.

On the 30-share Sensex platform, HDFC Bank was the prime loser, down 8.46 per cent. Tata Steel, Kotak Bank, Axis Bank, ICICI Bank, JSW Steel emerged losers. On the flip side, HCLTech, TCS, Infosys, TechM, Nestle, and PowerGrid were the only gainers.

As many as 2,510 stocks declined, while 1,301 advanced and 89 remained unchanged.

In the broader market, BSE Midcap and Smallcap indices declined 1 per cent each.

Volatility gauge, India VIX, soared over 11 per cent.

Sectorwise, except Information Technology, all other indices settled in the red. Nifty Bank, Financial Services, and Private Bank indices declined over 4 per cent each. Auto, metal, oil & gas realty sank 1-2 per cent.

In the previous session on Tuesday, the BSE Sensex dropped 199 points to 73,129. On the other hand, the NSE Nifty50 settled at 22,032, down, 65 points.

"Today’s market fall is led by banks on the back of HDFC Bank results, showing heightened levels of credit/deposit (CD) ratio beyond RBI’s comfort levels. This is the case with most other banks as well. Thus, the markets expect either margin pressure, in case banks go in for aggressive deposit mobilisation, a slowdown in lending growth, or both. This development can lead to some de-rating of the sector. After the significant up move we have witnessed recently, markets are taking a breather, especially since market valuations are higher than historical multiples," said Naveen Kulkarni, Chief Investment Officer, Axis Securities PMS.

In Asian markets, Seoul, Tokyo, Shanghai, and Hong Kong settled lower. European markets were also trading with sharp cuts. The US markets ended in negative territory on Tuesday.

Global oil benchmark Brent crude declined 1.84 per cent to $76.85 a barrel.

Foreign Institutional Investors (FIIs) bought equities worth Rs 656.57 crore on Tuesday, according to exchange data.

Meanwhile, the rupee slipped 1 paisa to settle at 83.13 (provisional) against the US dollar on Wednesday amid massive selling in domestic equity markets and a strong greenback overseas. However, renewed foreign capital inflows and a sharp fall in crude oil prices in the international markets supported the local currency and capped the losses, forex dealers said.

At the interbank foreign exchange, the domestic currency opened at 83.13 and traded in the range of 83.07 to 83.17 against the dollar. The unit finally settled at 83.13 (provisional) against the greenback, down 1 paisa from its previous close. On Tuesday, the rupee declined 26 paise to settle at 83.12 against the US dollar.