Stock Market Today: A sharp fall in HDFC Bank shares dragged down India’s benchmark Sensex and Nifty 50 indices on Friday, July 5, amid a broadly robust global economy, but was buoyed by declines in some big names such as Reliance Industries and SBI.
HDFC Bank shares closed 4.50 per cent lower, dragging down the major indexes the most after the company’s June quarter earnings report showed a sequential decline in loans and deposits.
Related article: HDFC Bank deposit, advance growth declines in April-June
Meanwhile, the stock’s weighting in the MSCI India index is set to double after foreign ownership fell below 55% at the end of June.
Experts say the upcoming Union Budget and banks’ June quarter profits will be key factors in determining the direction of stock prices in the near future.
Also read: HDFC Bank’s weighting in MSCI India Index to double, but does it matter?
While the Sensex and Nifty 50 indexes ended mixed, the midcap and smallcap segments continued to post record gains, raising concerns over unsustainable valuations.
The Sensex index fell 53 points or 0.07 per cent to close at 79,996.60, while the Nifty 50 index rose 22 points or 0.09 per cent to close at 24,323.85.
The BSE Midcap index hit a fresh all-time high of 47,484.71 during the session and ended at 47,437.85, up 0.75 per cent, while the BSE Smallcap index hit a fresh all-time high of 54,258.65 and ended at 54,153.96, up 0.70 per cent.
Around 380 stocks, including Reliance Industries, ICICI Bank, ICICI Lombard General Insurance Company, Federal Bank, HDFC Asset Management Company, BEL, HAL, Divis Labs, Dr Reddy’s Labs, Lupin, Persistent Systems, Siemens and Torrent, hit their fresh 52-week highs in intraday trade on the BSE.
The rise in small and mid-cap stocks has brought the total market capitalisation of all companies listed on the BSE to almost ₹From 44.98 million crores. ₹44.73 crore in the previous session, investors invested around ₹25 lakhs in one day.
(To be continued)
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