Market under pressure; bank shares tumble

The domestic equity indices continued to trade with deep cuts in mid-morning trade. The Nifty slipped below the 21,750 mark. Bank shares declined for the second day in a row.

At 11:30 IST, the barometer index, the S&P BSE Sensex, was down 1,084.46 points or 1.48% to 72,044.31. The Nifty 50 index lost 305.20 points or 1.39% to 21,727.10.

In the broader market, the S&P BSE Mid-Cap index shed 0.38% and the S&P BSE Small-Cap index declined 0.28%.

The market breadth was weak. On the BSE, 1,450 shares rose and 2,197 shares fell. A total of 122 shares were unchanged.

Buzzing Index:

The Nifty Bank index declined 3.15% to 46,607.20. The index fell 3.22% in two trading sessions.

HDFC Bank (down 6.21%), AU Small Finance Bank (down 3.11%), Kotak Mahindra Bank (down 2.6%), Bandhan Bank (down 2.31%) and ICICI Bank (down 2.04%), Federal Bank (down 1.94%), Axis Bank (down 1.68%), IDFC First Bank (down 1.53%), State Bank of India (down 1.51%) and IndusInd Bank (down 1.15%) edged lower.

HDFC Bank slipped 6.21% and the US-listed ADRs tumbled 6.7% overnight after the private lender reported December quarter earnings post Indian markets closing on Tuesday.

India`s largest private bank�s net profit increased 33.55% to Rs 16,372.54 crore on 59.58% jump in total income to Rs 81,719.65 crore in Q3 FY24 over Q3 FY23. Sequentially, the lender�s net profit rose 2.48% and total income grew by 4.23%.

Stocks in Spotlight:

Network18 Media & Investments locked in an upper circuit of 10%. The company said that its consolidated net loss widened to Rs 58 crore in Q3 FY24 as against a net loss of Rs 7.68 crore reported in Q3 FY23. Revenue from operations declined 4.11% to Rs 1,774 crore in the quarter ended 31 December 2023 from Rs 1,850 crore recorded in the quarter ended 31 December 2022.

PTC Industries rallied 4.21% after the company announced that its subsidiary Aerolloy Technologies has signed a multi-year agreement with Dassault Aviation for the supply of Titanium casting parts made in India.

Rail Vikas Nigam jumped 4.47% after the firm informed that it has formed a joint venture (JV) with Jakson Green named JGPL-RVNL EPC for green clean energy projects.

Global Markets:

Asian stocks tumbled on Wednesday, with Hong Kong and South Korea leading losses after China�s fourth-quarter gross domestic product growth missed estimates. The country�s economy grew by 5.2% in the October to December period last year, China�s National Bureau of Statistics said Wednesday. GDP climbed 5.2% for the whole of 2023.

U.S. markets dropped on Tuesday as bond yields ticked higher and Wall Street pored through the latest batch of fourth-quarter earnings. Federal Reserve Governor Christopher Waller indicated in a speech that the central bank could ease monetary policy slower than anticipated.

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