Stock Market Today: HDFC Bank Falls 10% in 2 Days; LTIMindtree Plunges After Q3 Earnings
by Sandip Das on 18 January 2024, 5 min read
The Indian equity market witnessed the third consecutive day of fall following weak global cues. At 11:50 AM, Sensex declined 277 points at 71,223 while Nifty shed 102 points and was trading at the 21,469 mark.
Around 968 stocks advanced and 1351 declined while 98 remained unchanged.
The fall in the stock market was largely on the back of the HDFC Bank share price which plunged over 10 percent in the last 2 days. This comes after the bank’s December quarter earnings disappointed investors. The bank reported a key miss in net interest margins (NIM) in the third quarter of FY24 due to higher cost of funds. Higher provisions and decadal low earnings per share (EPS) growth in Q3 also contributed to the decline. HDFC Bank witnessed its non-performing assets (NPAs) increase to 1.26 percent in Q3 FY24, up from 1.23 percent in the last fiscal year.
Among the sectors, selling was seen in IT, FMCG, and Bank Nifty which shed around 0.5 percent each.
Also, the share price of LTI Mindtree came under the hammer, crashing over 10 percent. This comes after the company’s Q3 earnings missed the Street’s estimates on all major fronts.
The company experienced a sequential increase of 0.6 percent in its net profit to Rs 1,169 crore in Q3. The revenue saw a 1.2 percent rise on-quarter to Rs 9,016 crore. The operating margin contracted to 15.4 percent in Q3, compared to 16 percent last quarter. This was due to high furloughs and low discretionary spending.
The company also postponed its ambition to achieve a 17-18 percent operating margin by a few quarters because of hiring delays.
Top Nifty50 Gainers
Last Traded Price (Rs)
Top Nifty50 Losers
Last Traded Price (Rs)
Investors were spooked after US Federal Reserve governor Christopher Waller’s recent comments that a pivot in the monetary policy may come slower than anticipated continued to haunt investor sentiment.
Following the hawkish remarks, investors are now skeptical of the Federal Reserve pulling a trigger on rate cuts at its March meeting. Expectations are that the much-awaited cut will now be in June.
Weak global cues
US markets ended in the red on January 17. The Dow Jones Industrial Average fell 94.45 points, or 0.25 percent, to 37,266.67. The S&P 500 lost 26.77 points, or 0.56 percent, to 4,739.21. The Nasdaq Composite dropped 88.73 points, or 0.59 percent, to 14,855.62.
On the other hand, Asian markets were trading on a mixed note. Nikkei was trading flat at 35,466 while Hang Seng added 0.73 percent at 15,388. Kospi added 0.17 percent and was trading at the 2,440 mark.
Disclaimer: The information provided in this blog post is for informational purposes only and should not be construed as investment or trading advice. The author is not a financial advisor and does not have any professional qualifications in this area. The author does not guarantee the accuracy or completeness of the information provided. Any action you take based on the information in this blog post is done at your own risk. Please consult with a financial advisor before making any investment decisions.
How useful was this post?
Click on a star to rate it!
Average rating 0 / 5. Vote count: 0
No votes so far! Be the first to rate this post.
Spread the love
Open Free Demat Account!
In just a few minutes, Simply provide some basic personal details, to get started.
As you are aware, under the rapidly evolving dynamics of financial markets, it is crucial for investors to remain updated and well-informed about various aspects of investing in the securities market. In this connection, please find a link to the BSE Investor Protection Fund website where you will find some useful educational material in the form of text and videos, so as to become an informed investor.