Sensex crashes Today: The Sensex and Nifty crashed due to HDFC Bank’s Q3 results, Middle East tensions, and fading Fed rate cut hopes.
ICICI Lombard surged, but Nifty Bank declined. Global markets, including Asian stocks, were affected. The Dollar Index rose, and UK inflation increased
Sensex crashes Today
Today witnessed a significant downturn in the Indian stock market, with the Sensex experiencing a sharp decline of 2.20%, losing 1,613.64 points to close at 71,500.76.
The Nifty 50 also recorded its largest single-day fall since February 24, 2022, dropping 2.06% or 453.90 points to end at 21,578.40.
This sudden plunge was triggered by HDFC Bank’s disappointing Q3 results, exacerbating concerns amid tensions in the Middle East and fading hopes for a Fed rate cut.
Almost all sectoral indices, except Nifty IT, ended in the red, with Nifty Bank and Nifty Financial Services witnessing a substantial dip of more than 4%. The broader market was not spared either, as the BSE MidCap index slipped by 1%, and the SmallCap index by 0.9%.
The impact extended beyond India, with Hong Kong’s Hang Seng index plummeting by 3.68% to reach its lowest level since November 2022 at 15,282.32.
Meanwhile, China’s CSI 300, measuring the largest companies listed in Shanghai and Shenzhen, fell to an almost five-year low, dropping 2.18% to close at 3,229.08, following China’s fourth-quarter GDP growth missing estimates.
On the global front, US stocks also faced downward pressure on Tuesday due to mixed earnings from Morgan Stanley and Goldman Sachs, impacting the banking sector. Additionally, sell-offs in Boeing and Apple weighed on the S&P 500.
Sensex crashes Today: Sensex, and Nifty close more than 2% lower
By the closing bell, the Sensex took a dip of 1,613.64 points, marking a 2.20% decline to settle at 71,500.76. Simultaneously, the Nifty experienced a drop of 453.90 points, reflecting a 2.06% decrease, closing the day at 21,578.40.
It was indeed a roller-coaster ride for the stock market as the numbers painted a picture of the day’s financial turbulence.
Sensex Crash Today Live: Morgan Stanley on ICICI Lombard
An “Overweight” call and an ambitious target of ₹1,750 per share.
The underwriting loss was a pleasant surprise, turning out lower than what was initially anticipated.
While the Profit After Tax (PAT) fell short of estimates by 2%, and the consensus by 10-15%, it’s worth noting that the company booked significantly lower capital gains.
The management remains steadfast, sticking to its guidance with a commitment to achieve a combined ratio of 102% by the end of FY25.
Sensex Crash Today: ICICI Lombard stock records largest intraday leap since May.
- ICICI Lombard General Insurance witnessed a robust 7.4% surge in its shares amid a generally weak market.
- The stock hit an intraday high of ₹1,476, marking its most significant intraday leap since May 2023.
- The impressive surge was attributed to the company’s stellar Q3 earnings report.
- In its Tuesday evening announcement, ICICI Lombard reported a substantial 22.4% YoY increase in net profit, reaching ₹431 crore compared to ₹353 crore in the previous year.
Sensex Crashes Today: Asian Market Slumps
- Consolidated net sales show a 5.4% increase, reaching ₹9,075 crore.
- Standalone net sales exhibit a 5.2% rise, totaling ₹7,883 crore.
- The Consolidated Profit Before Depreciation, Interest, and Taxes (PBDIT) margin sees a significant improvement, up by 400 basis points.
- Similarly, the standalone PBDIT margin witnesses a boost of 410 basis points.
- Consolidated profit after tax experiences a notable surge, marking a substantial 34.5% increase.
Sensex Crash Today: Nifty Bank index records the largest one-day drop since May 2022.
The Nifty Bank index takes a hit, witnessing a substantial 4% drop, marking its most significant single-day fall since May 2022.
-HDFC Bank is in the spotlight, experiencing an almost 8% decline, with its shares resting at ₹1,546.20.
-ICICI Bank joins the downturn, sliding 2.44% to ₹984.40, while Axis Bank follows suit with a 2.84% dip, landing at ₹1,087.30.
Sensex Crash Today: UK inflation rate rises to 4%
The UK saw a rise in its annual consumer price inflation for the first time in 10 months. December’s figures showed an increase to 4% from November’s 3.9%, which marked its lowest in over two years. This unexpected shift is making headlines, catching many by surprise.
Sensex Crash Today: Doller Strengthens
The dollar index reached a one-month peak against various currencies on Wednesday, driven by comments from Federal Reserve Governor Christopher Waller, which tempered hopes for a March rate cut, according to Reuters.
On the other side, China’s offshore yuan couldn’t sustain a slight recovery from a two-month low amidst mixed domestic economic data. As anticipation builds for Beijing to introduce additional stimulus measures, the currency faces uncertainty in the financial landscape.
5 Reason why Sensex crashes Today
HDFC Bank Impact:
- Following HDFC Bank’s performance report, the stock market experienced a notable impact, with HDFC Bank’s shares contributing to a downturn.
- The bank’s influence on market sentiment reflects the significance of key players in driving broader market trends.
Dollar Strengthens:
- The strengthening of the US dollar indicates a shift in global currency dynamics, potentially impacting international trade and financial markets.
- A robust dollar often affects commodities, and trade balances, and can have ripple effects on emerging market currencies.
Asian Market Slumps:
- The decline in the Asian markets suggests a regional response to global economic factors, creating a challenging environment for investors and businesses.
- Economic interdependence makes Asian markets sensitive to developments in major economies, leading to synchronized movements in the region.
READ MORE ABOUT: HDFC Bank Q3 Result 2024 Net Profit Surges by 33% to ₹16,372 Crore.
Rise in 10-year Treasury Yield:
- An increase in the 10-year Treasury yield can signal rising interest rates, impacting borrowing costs and investment decisions in various sectors.
- Investors closely monitor changes in Treasury yields as they influence market expectations and can trigger shifts in asset allocations.
Overvalue Mid and Small-Caps; Sensex Market Crashes:
- Overvaluation of mid and small-cap stocks suggests a potential correction in the market, highlighting the importance of careful investment decisions.
- The Sensex market crash reflects broader concerns, emphasizing the need for a balanced and informed approach in managing investment portfolios.
Conclusion:
Today’s financial landscape witnessed a significant crash in the Sensex and Nifty indices, triggered by HDFC Bank’s Q3 results, Middle East tensions, and fading hopes for a Fed rate cut.
Global markets, including Asian stocks, were affected. ICICI Lombard stood out with a strong surge, while the Nifty Bank index experienced a notable decline.
The day also saw impactful movements in the Dollar Index, UK inflation rates, and a rise in the 10-year Treasury yield, adding complexity to market dynamics. Overall, the events underscore the interconnected nature of global markets and the need for a holistic view of economic indicators.
