Nifty, Sensex Tumble Nearly 2% As HDFC Bank, ICICI Bank Weigh: Midday Market Update

India's benchmark stock indices fell nearly 2% through midday on Wednesday, tracking a slump in index heavyweights HDFC Bank Ltd. and ICICI Bank Ltd.

As of 12:01 p.m., the benchmark NSE Nifty 50 tumbled 356.90 points, or 1.62%, to 21,675.40, while the S&P BSE Sensex fell 1284.25 points, or 1.76%, to 71,844.52. 

The Nifty fell to an intraday low of 21,636.95 and the Sensex to a low of 71,757.54 so far in the day.

The Nifty Bank and Financial Services sectors declined sharply, tracking a decline in HDFC Bank Ltd., which further weighed on the indices.

"Today, the Sensex and Nifty experienced a significant decline due to a sell-off in banks following HDFC Bank's Q3 results and amid unfavorable global indicators. The Nifty fell below 21,800, while the Sensex recorded an 850-point decline," said Shrey Jain, founder and chief executive officer at SAS Online.

"As for Bank Nifty, it's currently trading below 47,000, with a decrease of more than 2.4%. It's wise to adopt a wait-and-see approach before making any decisions. Regarding Nifty, right now, 22,120 is like a barrier that's difficult to surpass. This might be a good chance to buy stocks, but it's crucial to set a stop loss for safety," Jain said.

HDFC Bank Ltd, ICICI Bank Ltd, Kotak Mahindra Bank Ltd, Axis Bank Ltd, and Reliance Industries Ltd were weighing on the Nifty 50.

Infosys Ltd, Larsen & Toubro Ltd, HCL Technologies Ltd, Tata Consultancy Services Ltd, and Titan Company Ltd limited the decline in the index.

On NSE, heavy-weight sector Nifty Bank declined the most among sectoral indices, subsequently exerting pressure on the benchmark Nifty 50 index. Nifty Media was the best performer sector among its peers, and was 1.60% higher.

Total 10 sectors were trading in red, while two sectors gained on NSE.

Broader markets also declined on BSE. The S&P BSE Smallcap declined 0.60%, whereas S&P BSE MidCap was 0.69% lower.

On BSE, 15 sectors out of 20 fell, while five rose. S&P BSE Bankex index plunged 3.34% to emerge as the top loser among sectoral indices.

Market breadth was skewed in favour of sellers. Around 2,362 stocks fell, 1,300 stocks rose, and 121 remained unchanged on BSE.