Indian shares buck broader Asian gains as HDFC Bank drags
Indian benchmark shares fell on Thursday, lagging broader Asian gains, as losses in heavyweight HDFC Bank after report of a possible U.S. class-action lawsuit outweighed support from falling oil prices on hopes of easing Middle East tensions. The Nifty 50 fell 0.48% to 24,090.85 and the BSE Sensex slipped 0.7% to 76,933.59. The Sensex’s indicative close pointed to a sharp 3.3% decline during the…
Indian stocks trails broader Asian gains amid HDFC Bank woes
Thursday saw Indian benchmark shares slip, trailing broader Asian markets, as heavyweights like HDFC Bank's losses overshadowed relief from lower oil prices and hopes of easing tensions in the Middle East. The Nifty 50 declined 0.48% to 24,090.85, while the BSE Sensex dropped 0.7% to 76,933.59. The Sensex's final value indicated a substantial 3.3% drop on the monthly derivatives-expiry day.
Prior to the auction, both indices had slipped 0.31% and 0.37%, respectively. They have been down nearly 0.7% and 0.8% this week, marking a third consecutive weekly loss. HDFC Bank plummeted 2.2% to its lowest point in almost 2-1/2 years. A U.S. securities lawsuit has been filed against the lender and two senior executives over allegations of illegal payments totalling $4.7 million to Maharashtra State Road Development Corporation to entice large deposits.
HDFC Bank's shares have also been impacted by uncertainty surrounding the renewal of CEO Sashidhar Jagdishan's tenure, set to end in October. Macquarie suggested that a temporary extension would prolong succession concerns, further pressuring the top private lender. A three-year renewal could alleviate this pressure. While other Asian markets experienced gains, spurred by Nvidia's earnings beat which boosted technology stocks, Brent crude oil hovered around $88 a barrel as Qatar's prime minister prepares to visit Tehran on Thursday to attempt to restart peace talks between the U.S. and Iran.
Of the 16 major sectors in India, 11 fell, with small-caps and mid-caps closing flat. Pankaj Pandey, head of retail research at ICICI Securities, noted that large-cap indexes in India have not performed well due to weakness in some heavyweight stocks, while broader market indexes are reaching record highs due to earnings momentum.
Among individual stocks, ICICI Prudential AMC fell 4% after its promoter, Prudential Corporation, sold a 2% stake to meet shareholding norms.
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