ICICI Bank and Reliance drive the Nifty below 26,000, as the Sensex falls more than 500 points.

ICICI Bank and Reliance Lead Nifty Drop Below 26,000, as Sensex Sheds Over 500 Points

Written by: Supriya Kadu

Edited by: Omkar Devadkar

Last Updated: September 30, 2024

Summary: On the BSE, 1,244 shares rose while 1,909 shares declined, indicating a negative total market breadth.

In response to conflicting cues from Asian markets, the Indian equities benchmarks saw a steep decline in value on Monday, led by losses in ICICI Bank, Reliance Industries, Infosys, Mahindra & Mahindra, Tata Consultancy Services, Axis Bank, and HDFC Bank.

At 9:26 a.m., the Nifty 50 index had dropped 103 points to 26,076 and the Sensex had down 400 points, or 0.47 percent, to 85,171.

Asian markets were seeing mixed results as Japan's Nikkei fell more than 4% due to a huge increase in the yen value following Shigeru Ishiba's election as prime minister, who is seen as a hawkish monetary policy advocate.

Ishiba, a well-known opponent of the Bank of Japan's massive stimulus program from a decade ago, defeated Sanae Takaichi, a supporter of monetary policy, in a close race on Friday that was determined after the stock market had closed. Tuesday is when he's supposed to become premier.

However, as part of broad measures to help the nation's troubled real estate market as the economy slows down, China's central bank stated on Sunday that it will order banks to decrease mortgage rates for current house loans by October 31. This news sent China's markets surging.

The Shanghai Composite increased by 3%, the SZSE Component index grew by 5%, the CSI 300 index in China increased by 3.45%, and the Hang Seng in Hong Kong increased by 4.5%.

In the meantime, there was widespread selling pressure as 10 of the thirteen sector gauges that the National Stock Exchange had collected were down, with the Nifty Realty index falling 1.5% to lead the decline. Additionally, there was a 0.55–1.35% decline in the Nifty Auto, Bank, Financial Services, IT, Media, PSU Bank, Private Bank, and Oil & Gas indices.

On the contrary, increased stimulus measures promised by China to support its economy were attracting purchasing interest in metal shares.

As the Nifty Midcap 100 index dropped 0.5% and the Nifty Smallcap 100 index dropped 0.5%, there was selling pressure to mid- and small-cap equities.

Hero MotoCorp's stock dropped 3% to Rs 5,784, making it the biggest loser on the Nifty. The following companies saw declines of one to two percent: Mahindra & Mahindra, Tech Mahindra, Coal India, Bharat Petroleum, Bharat Electronics, ICICI Bank, Axis Bank, Tata Motors, Reliance Industries, and Maruti Suzuki.

However, the winners included Hindalco, Tata Steel, JSW Steel, NTPC, Titan, Britannia, and Asian Paints. On the BSE, 1,244 shares were up while 1,909 dropped, indicating a negative total market breadth.

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