Sensex plunges 670 points: Blue Star, SJVN top gainers; HDFC Bank among top losers
Sensex fell nearly 670 points or over 1% at 66,933.52, dragged by HDFC Bank and Reliance Industries (RIL). The broader S&P BSE 500 index was trading at 27,712.32, down 205.65 points or 0.74% The market breadth skewed in favour of bears with 350 stocks trading with declines.
The top gainers in the BSE 500 pack around 11:50 am were Blue Star (15%), SJVN (5.53%), Apar Industries (4.98%), Varroc Engineering (3.82%) and Mahindra & Mahindra Financial (3.80%) while the top losers were CCL Products India (4.52%), Heidelberg Cement (4.19%), Jindal Stainless (4.04%), Kalyan Jewellers (3.99%) and HDFC Bank (3.83%).
Indian shares fell amid negative global cues as Street awaits the Federal Reserve's Federal Open Market Committee (FOMC) policy outcome.
While the Fed is expected to maintain the status quo on the interest rates this time around while adopting a wait-and-watch strategy, inflation worries loom amid rising crude oil prices which are hovering around the $92/bbl.
On the domestic front, HDFC Bank triggered the fall, following the management commentary on the largest private lender in its first investor meeting after the merger with HDFC.
The largest Indian bank with a market capitalisation of Rs 1,184,105 crore expects a downward adjustment to the incoming net worth of HDFC, amounting to a book value per share (BVPS) cut of Rs 23 per share for the merged entity. It also sees its net interest margins (NIMs) remaining under pressure over the next 2-3 quarters.
Meanwhile, billionaire Mukesh Ambani-led RIL shares fell 3% to Rs 2,461.6 in Wednesday's intraday trade on BSE amid reports of a block deal.
Nifty was down by 184.15 points or 0.91% over Monday closing and trading at 19,949.15.
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