Overview
- Benchmarks reversed recent gains with the Sensex falling about 876 points and the Nifty slipping below 23,000 to roughly 22,889 after heavy selling in large-cap names.
- Private-sector lenders led the decline when investors reacted to September-quarter results for HDFC Bank and Axis Bank that raised questions on margins, other income and provisions.
- Rising Brent crude and renewed tensions near the Strait of Hormuz kept inflation and rupee risks on investors’ minds and amplified selling pressure.
- Foreign institutional flows remained unstable even after a one-day buying streak, while strong domestic mutual fund inflows and DII support limited losses but did not reverse the drop.
- Public-sector banks outperformed during the sell-off and the near-term outlook now hinges on upcoming corporate earnings, crude prices and whether foreign buying becomes sustained.