-The stock market went down the hill today with Sensex going down over 1600 pts and Nifty down 460 pts at the end of today’s session.
– Indian markets followed the path of global markets and closed in the red.
– The biggest reason was HDFC Bank shares… It is the highest-weighted stock on the benchmark indices and closed 8.5% lower. This happened due to disappointing quarterly results posted by the bank. CLSA and Morgan Stanley red-flagged loan growth and lower liquidity coverage ratio (LCR) on the HDFC Bank.
-HDFC Bank alone contributed 233 points to Nifty’s 454-point fall, which is the biggest reason for the fall in the market.
-Except for Nifty IT, all sectoral indices closed in the red.
-Nifty Bank and Nifty Financial Services closed over 4% lower, while Nifty Metal, Realty, Oil & Gas, and Auto closed 1-3% lower.
-A decline in global markets also added to the downtrend. As per data, a patchy recovery is on the charts for China and the chances of a rate cut in March are seemingly low too.
-Markets price in a 65% chance of a Fed rate cut in March, according to the CME FedWatch tool, compared with the 81% likelihood at the start of the week.
-The dollar index is at a one-month high – that means crude and commodities are more expensive right now. It affects in terms of higher import costs and widening current account deficit.
-The 10-year US Treasury yield rose above 4% leading to global negativity in general.
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