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On January 17, 2024, the Nifty 50 and Sensex experienced their most significant single-day percentage decline, mainly triggered by a substantial drop in HDFC Bank’s share price following its December quarter results.
Nifty 50 opened at 21,647.25, hitting an intraday low of 21,550.45, and closed with a 2.09% loss at 21,571.95.
Sensex opened at 71,998.93, touched an intraday low of 71,429.30, and closed with a 2.23% loss at 71,500.76.
This marked the largest single-day fall in percentage terms for both indices since June 13, 2022, when Nifty 50 and Sensex dropped 2.64% and 2.68%, respectively.
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Impact on the stock market
Except for Nifty IT, which rose by 0.64%, all other sectoral indices closed in the red. Nifty Bank and Financial Services indices both fell by 4.28%.
The Nifty Private Bank index dropped by 4.23%, and the Nifty Metal index saw a loss of 3.13%.
| Sector/Index | Performance |
| Information Technology | +0.64% |
| Healthcare | -0.69% |
| Oil & Gas | -0.99% |
| Realty | -1.42% |
| PSU Banks | -1.74% |
Top gainers today
| Company | Price | Change (%age) |
| HCL Tech | 1,575.90 | + 1.31% |
| SBI Life Insurance | 1,421.15 | + 0.88% |
| LTIMindtree | 6,275.60 | + 0.64% |
| TCS | 3,884.60 | + 0.60% |
| Infosys | 1,640.20 | + 0.53% |
Top losers today
| Company | Price | Change (%age) |
| HDFC Bank | 1,537.50 | – 8.44% |
| Tata Steel | 131.65 | – 4.08% |
| Kotak Mahindra | 1,779.65 | – 3.70% |
| Hindalco | 560.25 | – 3.33% |
| Axis Bank | 1,082.30 | – 3.29% |
Market aftermath: Impact on stocks
HDFC Bank tumbles 8% on Q3 earnings
HDFC Bank, the top Nifty loser, saw an 8% drop after high provisions for alternative investment funds and limited Q3 profit growth, which stood at 2.5%. The stock, up 5% in the past year, underperformed Bank Nifty’s 13% surge.
Q3 net interest income grew 4%, and net profit rose 2.5%, supported by treasury gains and tax write-backs of Rs 1,500 crore. The earnings per share (EPS) fell 4% sequentially to Rs 22. Flat margins, at 3.6%, disappointed, but management anticipates a recovery to 3.7% in 18-24 months.
MRF hits Rs 1.5-lakh mark, emerges as India’s priciest stock
MRF, India’s costliest stock, reached Rs 1.5 lakh per share, marking a 53% climb in the past year, outpacing Nifty’s 20% gain. After hitting the milestone, the stock settled at Rs 1,37,711, up 0.8% from the previous close.
In Q2, MRF recorded a fivefold YoY surge in net profit, reaching Rs 572 crore, compared to Rs 124 crore in the base quarter. The company’s Q2 revenue rose 6.5% YoY to Rs 6,088 crore.
Also Read: Why is each share of MRF worth ONE LAKH rupees?
ICICI Lombard shares soar 7.4%
ICICI Lombard General Insurance witnessed a significant surge of 7.4% in its share value, marking its largest intraday jump since May 2023. The boost followed the release of Q3FY24 financial results, revealing a robust 22.4% YoY rise in net profit to ₹431 crore, surpassing estimates.
Q3 net premium income reached ₹4,690 crore, and the solvency ratio improved 256% YoY. The claims ratio improved to 68.8% in Q3FY24. The stock’s recent performance indicates a 3.25% increase in the current month.
Crude oil prices retreat
Crude oil futures decline as the dollar strengthens. March Brent oil is at $77.75 (-0.69%), and March WTI is at $71.92 (-0.83%).
On MCX, January crude oil futures traded at ₹5975 (-0.47%), and February futures at ₹6019 (-0.30%) from the previous close. Meanwhile, China’s Q4 2023 GDP growth impacts the market.
Conclusion
In today’s market rollercoaster, HDFC Bank’s Q3 results triggered a significant Nifty 50 and Sensex dip. HDFC Bank slid 6%, while MRF emerged as India’s priciest stock at Rs 1.5 lakh. ICICI Lombard soared 7.4%, buoyed by strong Q3 results. Crude oil prices retreated amid a strengthening dollar.
Stay tuned on StockGro for more insights on the market!
