HDFC Bank's weak net interest margin and Brent crude above $90 dragged Sensex 523 points. Reliance record profit limited losses. Vijayakumar warns oil trend could hurt rupee, FPI flows.
Indian stocks fell Monday, with the Sensex dropping 523 points and the Nifty losing 134, as HDFC Bank's quarterly results disappointed and Brent crude climbed above $90 on US-Iran tensions.
HDFC Bank declined nearly 5%. "HDFC Bank has disappointed, particularly on the NIM front," said VK Vijayakumar, chief investment strategist at Geojit Investments. Kotak Mahindra Bank, InterGlobe Aviation, Maruti and Bajaj Finance also fell.
Bharti Airtel, Tech Mahindra, NTPC, Reliance Industries and ICICI Bank rose. Reliance traded nearly 1% higher after reporting record quarterly core profit and EBITDA, powered by its oil-to-chemicals and telecom businesses.
Vijayakumar said the market faces opposing forces. The strongest negative is Brent crude above $90. If sustained, it would revive India's vulnerability to energy shocks and hurt the rupee and foreign portfolio flows. On the positive side, the weakening AI trade in the US, South Korea and Taiwan could make India attractive to FPIs.
In Asia, Shanghai and Hong Kong rose. South Korea's KOSPI dropped 4.35%. Foreign institutional investors sold a net Rs 376 crore in equities Friday, exchange data showed. Brent crude was at $90.22 a barrel, up 2.4%.
HDFC Bank carries an Alpha Score of 45 out of 100, reflecting mixed sentiment. ICICI Bank, which gained in early trade, scores 57.
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