Sensex Drops Over 500 Points Nifty Below 17750 Banking Shares Drag

India’s equity benchmarks fell sharply in afternoon trade after showing a quick rebound in early trade as robust banking firm Reliance Industries, as well as equity and financial services indexes, faced selling pressure.

Sensex, which rebounded over 850 points earlier in the day, fell more than 500 points and Nifty rebounded from a low of 17,613.10 to a daily high of 17,915.85 and then below 17,750. Reliance Industries, Kohtak Mahindra Bank, Infosys, Larsen & Tubro, HDFC Bank and Axis Bank are among the top pharmaceuticals in Sensex.

The Sensex was down 530 points, or nearly 1%, to 59,455, and the Nifty 50 index was down 132 points at 17,725 at 1:40 pm.

With the downgrade of India’s shares by global investment bank Morgan Stanley, consecutive selling by foreign institutional investors dampened investor sentiment towards the Indian market.

Foreign institutional investors sold shares worth Rs 3,818.51 on Thursday, while foreign institutional investors bought shares worth Rs 836.6.

FII has sold more than Rs 11,000 shares to date, according to the NSDL.

Six of the 15 sector indicators compiled by the National Stock Exchange fell 1.3% due to the decline in the Nifty Private Bank Index. The Nifty Bank, IT, financial services, and oil and gas indexes also fell.

Instead, there is a desire to buy real estate, pharmaceuticals, PSU banks and metal stocks.

Medium and small cap stocks traded mixed as the Nifty Midcap 100 Index rose 0.3% and the Smallcap 100 Index fell 0.6%.

Indian Railway Catering, Tourism and Online Ticketing – The Indian Railways Catering and Tourism Company (IRCTC) made a strong rebound after the Ministry of Railways withdrew its decision to share convenient toll roads. The Ministry of Railways has decided to withdraw the IRCTC decision on low fares, tweeted by the Director General of Investment and Public Asset Management. The decision was reversed within 19 hours of the stock price dropping sharply.

RBL Bank – One day after reporting earnings for the September quarter, it fell 15% to a daily low of 172.10 rupees. Bank RBL’s annual surplus fell significantly due to an increase in provision in the second quarter of this financial year. The bank reported a net profit of Rs 31 against Rs 144 for the same quarter last year, down 78%.

Box Mahindra Bank was Nifty’s biggest loser, with the share price falling 3.4 percent to rupees 2027. Reliance Industries, NTPC, IndusInd Bank, Larsen & Tubro, Tech Mahindra, Axis Bank, Sun Pharma, HDFC, SBI Life, Aisher Motors and Wipro also down 1.2-2.6%.

The winners, however, include UltraTech Cement, Shree Cement, Cipla, Maruti Suzuki, Tata Steel, Adani Ports, Tata Motors and Divi’s Labs.

The overall market area was negative as 1,761 shares fell and 1,400 shares on the BSE rose.