Following a three-day decline, Sensex and Nifty experienced a notable surge on Friday. The BSE Sensex and NSE Nifty began higher, gaining more than 600 points and 170 points, respectively, after three days of continuous declines. As of 9:16 a.m. IST, the S&P BSE Sensex increased 0.79% to 71,767.14%, while the blue-chip NSE Nifty 50 increased 0.70% to 21,610.70 points
This comes just a day after the Indian stock market struggled to meet its previous potential, reaching a lifetime high this week. Following the release of HDFC Bank’s quarterly results for December 2023, both the Sensex and Nifty fell continuously for two days.
On January 17, the Sensex and Nifty both fell sharply a day after HDFC Bank reported its Q3 results, with the private lender’s stock dropping by more than 9% in a single session. On that day, the Sensex fell more than 1600 points and the Nifty fell more than 430 points in a single session, the largest drop in the NSE benchmark since 2022.
The stock market witnessed a collapse during the week it reached its all-time high, as BSE Sensex surpassed the historic 73,000 points milestone and Nifty crossed the 22,000 mark for the first time. Despite three consecutive days of market decline, there is anticipation of a gradual recovery for both Sensex and Nifty in the upcoming week. The collapse of Nifty Bank following HDFC’s quarterly reports, which revealed static margins, akin to the previous quarter, set off this week’s stock market meltdown.
Nifty Bank shows mild recovery
Nifty Bank was up more than 430 points when markets opened on Friday, indicating a gradual rebound after dropping 2060 points on Wednesday and placing pressure on the shares of all significant private lenders.
HDFC Bank’s Q3 results had a ripple effect on the stock market, triggering a nearly 10 percent drop in the private lender’s shares in a single session. This, in turn, resulted in the struggle for shares for other private banks such as Axis Bank and Kotak Mahindra.
HDFC Bank shares are up 0.72 percent at ₹1,496.85 when markets open on January 19, following three days of declines.
