Indian equities declined for a second consecutive session, with the Sensex and Nifty falling amidst US legal challenges against HDFC Bank and ongoing geopolitical uncertainties impacting investor sentiment.
Indian shares fell for a second straight session on Thursday, with the Sensex sliding 539.35 points, or 0.70%, to close at 76,933.59 and the Nifty ending 116.90 points lower at 24,090.85. The market weakened late in the day as traders cut positions on the monthly derivatives-expiry session, while persistent geopolitical unease kept risk appetite subdued, according to PTI.
HDFC Bank was the biggest drag on the Sensex, losing 2.08% to finish at Rs 712 after reports of a US class-action lawsuit. NDTV Profit and other financial outlets said the suit, filed in the US District Court for the Southern District of New York, accuses the lender and some executives of disguising payments as marketing expenses. The bank has said it will contest the allegations vigorously and has argued that such cases are common in the US after share-price falls.
Reliance Industries also weakened, while Bharti Airtel, NTPC, Mahindra & Mahindra, HCL Technologies and ITC were among the other major losers. By contrast, Kotak Mahindra Bank, ICICI Bank, Tech Mahindra and Bharat Electronics provided some support. The broader market was mixed, with the BSE MidCap Select index down 0.47% and the SmallCap Select index little changed, while banking shares came under the heaviest pressure.
Broader sentiment was also affected by firmer crude prices and a lack of progress on Middle East diplomacy. PTI said Brent crude rose 0.67% to $88.43 a barrel, while overseas markets were uneven, with gains in South Korea and Shanghai offset by losses in Tokyo and Hong Kong. Foreign investors bought Indian equities worth Rs 502.63 crore on Wednesday, exchange data showed, but that did little to prevent Thursday’s decline.
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