Market News
2 min read | Updated on August 13, 2024, 13:14 IST
SUMMARY
The NIFTY50 trades in red but managed to recover from its intraday lows. HDFC Bank has dragged the index lower as the stock saw its sharpest decline in over a month. This sell-off was triggered by a lower-than-expected increase in the stock’s weight in the MSCI index. The broader markets outperformed, with Nifty Midcap 100 index up by 0.15%.
Stock list
NIFTY50 recovers to trade above the 24,300 level, HDFC Bank sees sharpest decline in over a month
The NIFTY50 index is trading above the 24,300 mark after hitting an intraday low of 24,277.17, bouncing back from its trendline support. Both NIFTY50 and SENSEX were down by 0.12% and 0.14%, respectively, at midday but had recovered slightly from their lows.
Titan and Reliance Industries helped cushion the index, while HDFC Bank’s sharp fall weighed heavily. The stock recorded its sharpest single-day fall in over a month due to a lower-than-anticipated increase in its weight in the MSCI index.
It was expected that the upcoming rebalancing, due later this month, would see a 50-basis point increase in HDFC Bank’s weight; however, it will only see a 25-basis point increase, triggering the fall in share prices.
The Nifty Bank index underperformed, dropping 250 points due to HDFC Bank’s decline. India VIX was also trading lower at 15.67 mark.
On the sectoral front, most indices traded in green, led by Nifty Pharma (+0.35%), which hit a fresh all-time high, surpassing its previous record set on August 8, 2024. However, Nifty Financial Services (-0.84%) and Nifty Bank (-0.50%), were top losers. The broader markets exhibited relatively outperformance, with the Nifty Midcap 100 up by 0.15% and the Nifty Midcap 100 index gaining 0.05%. Despite this, market breadth was weak, with 1,242 stocks declining and 1,041 stocks advancing.
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