Indian bank stocks bleed as HDFC, Axis sink Sensex 718 points

Indian equities extended their morning slide through the mid-session on Monday, with the BSE Sensex falling 718 points, or 0.92%, to 77,433.54 and the NSE Nifty50 dropping 180 points, or 0.74%, to 24,154.70. The Nifty broke below the 24,200 support level that traders had flagged as a line in the sand at the open.

The selling was concentrated in private-sector banking. Axis Bank crashed 5.69% to ₹1,252.90 on heavy volume of 1.81 crore shares, making it the worst performer on the Nifty50 by value. HDFC Bank lost 5.20% to ₹777.00, with 3.65 crore shares changing hands. Kotak Mahindra Bank fell 2.62% to ₹379.75, and Jio Financial Services declined 1.96% to ₹238.21.

Ponmudi R, CEO of Enrich Money, said the trigger was direct: “HDFC Bank declining sharply after reporting weaker-than-expected net interest margins, dragging the banking index lower and weighing on broader market sentiment.”

The sell-off spilled beyond financials. Maruti Suzuki dropped 2.85% to ₹13,410, a sign that consumption and auto stocks were catching the downdraft.

Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities, said the Nifty’s breach of 24,200 had brought the next critical threshold into focus. “The zone of 24,050–24,070 will act as a crucial support for the index while the resistance lies in the zone of 24,300–24,320.” A slip below 24,050 would expose the index to the 23,900–23,920 band, he added.

On the options front, Shah pointed to meaningful call writing across the 24,200 and 24,300 strikes, with substantial put open interest at 24,100 and 24,000 strikes. The market is pricing in a range-bound to weak bias for the rest of the session, he said.

For the Sensex, Shah placed support at 77,200 and resistance at 78,000. The index was trading uncomfortably close to the lower bound.

Bank Nifty opened with a sharp gap-down near 57,786, slipping below the 58,000 psychological level. Ponmudi R warned the breakdown had weakened the near-term technical structure, placing the index under pressure in the opening session. He identified 57,600–57,500 as the next support, with a break below potentially dragging the index to the 57,300–57,200 zone.

Against the broad weakness, a few stocks held firm. Cipla surged 3.27% to ₹1,465.10 on volume of 8.44 lakh shares. Trent jumped 2.22% to ₹2,905.60, with over 9.31 lakh shares traded. JSW Steel rose 1.71% to ₹1,258.50, ONGC gained 1.54% to ₹251.09, and Bharti Airtel advanced 1.33% to ₹1,934.10, keeping telecom in positive territory.

Crude oil remained a key pressure point. MCX Crude Oil opened with a sharp gap-up, reclaiming levels above ₹8,000 and trading in the ₹8,100–₹8,150 range, driven by the ninth consecutive night of US military strikes on Iran and fears of disruptions to the Strait of Hormuz. US Oil similarly broke above $83 from its prior consolidation zone. Ponmudi R noted that crude hovering around the $85 mark, as fears of prolonged geopolitical tensions and potential supply disruptions continued to underpin energy markets, was compounding investor caution.

The Indian rupee weakened to a two-month low of around ₹96.4 against the US dollar, reflecting dollar demand and crude pressure.

On the precious metals front, MCX Gold opened with a gap-up near ₹1,41,500, with resistance at ₹1,42,000, while MCX Silver faced resistance near ₹2,20,000. COMEX Gold continued to hold above the $3,980–$4,000 support zone.

Broader market breadth on the BSE presented a more resilient picture. Of 3,551 stocks traded, 1,741 advanced against 1,598 declines, with 212 unchanged. Seventy-two stocks hit fresh 52-week highs against 59 at 52-week lows, while 112 stocks were locked in upper circuits compared to 95 in lower circuits. That suggests the index-level weakness was concentrated in heavyweight financials rather than a market-wide rout.

Ponmudi R summed up the session’s mood: “In the absence of any meaningful easing in geopolitical tensions, broader market sentiment is expected to remain cautious, with earnings and global developments continuing to dictate near-term market direction.”

HDFC Bank, the worst hit among large-cap lenders, carries an Alpha Score of 45/100 – a mixed rating that reflects the bank’s solid franchise but flagging near-term momentum after the NIM miss.