Nifty Bank experienced an intraday decline of nearly 5,000 points or 10 per cent on Tuesday as investors made mincemeat of the markets following poll trends that indicated the INDIA alliance was fighting hard around half past noon against the exit polls that had handed the Bharatiya Janata Party (BJP) led NDA alliance a resounding victory.
All 12 of the index’s companies were trading lower as Nifty Bank hit its lowest point of the day, 46,077.85. Ranking heavyweights HDFC Bank and ICICI Bank were among the top three laggards, having been surpassed in the slide by Reliance Industries (RIL).
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In addition, the state-run State Bank of India (SBI) had a significant role in the collapse. SBI plummeted by an enormous 19 per cent, reaching an intraday low of ₹732. The counter’s market capitalization decreased to little over 7 lakh crore on the BSE after surpassing ₹8 lakh crore at its all-time high.
“Today, Bank Nifty experienced a sharp decline, finding support near its 200-day EMA at 46,200. Due to uncertainty surrounding the election results, we may observe additional selling pressure if Bank Nifty falls below its 200-day EMA. Consequently, 46,200 will serve as an immediate support level, while 48,000 will act as the first resistance level for Bank Nifty,” said Rupak De, Senior Technical Analyst, LKP Securities.
HDFC Bank dropped 7.5 per cebt to ₹1,454, the day’s low. On Monday, the stock closed at ₹1,572.20 on the NSE. With a 9.2 per cent decline, ICICI Bank—the second-largest private lender by market capitalization—reached the day’s low of ₹1,053.55.
The two biggest laggards, Bank of Baroda (BoB) and Punjab National Bank (PNB), both collapsed by 20 per cent. At this same period, the following banks saw declines: Bandhan Bank, IndusInd Bank, Federal Bank, IDFC First Bank, Axis Bank, AU Small Finance Bank, and Kotak Mahindra Bank. The declines ranged from 12 per cent to 4 per cent.
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Published: 04 Jun 2024, 04:38 PM IST
