Stock market fall explained: Adani stocks tumble, HDFC Bank drags Nifty; Reliance gains

Stock market fall explained: Sensex drops 493 points, Nifty below 24,200 — 6 key reasons


The equity benchmark indices BSE Sensex and NSE Nifty remained under pressure on Monday (August 31) with the Nifty holding above the crucial 24,000 level despite weakness across key stocks.

HDFC Bank failed to hold its opening gains and emerged as a drag on both the Nifty and Nifty Bank. The banking index, however, saw a major adjustment after the closing auction session (CAS) and ended around 600 points higher compared with its 3:15 pm level.

Selling intensified in Adani Group stocks following the Morgan Stanley Capital International (MSCI) rejig. Adani Enterprises ended 10% lower, while Adani Ports and Special Economic Zone closed 7% down.

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On the other hand, ICICI Bank and Reliance Industries were among the top Nifty gainers, helping limit the broader decline. Reliance Industries saw a sharp upmove in the final hour of trade and ended around 1% higher.

Auto stocks also closed largely in the green ahead of the monthly sales numbers, with Bajaj Auto emerging as the top gainer. Eternal was among the top Nifty losers. Sources said Zomato is set to lay off 250 employees.

The Nifty ended the session holding the 24,000 support level as investors tracked sharp moves in Adani stocks, weakness in HDFC Bank and gains in select heavyweight stocks.

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From the Sensex basket, Bajaj Auto Ltd, Oil and Natural Gas Corporation Ltd, TVS Motor Company Ltd and Coal India Ltd were the major gainers. Adani Ports and Special Economic Zone Ltd, Tata Steel Ltd, Infosys Ltd, HDFC Bank Ltd, Hindalco Industries Ltd and InterGlobe Aviation Ltd were the biggest laggards.



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