Indian stocks closed more than 1% lower Oct. 19, as private-bank declines and high oil prices pressured the benchmarks after they had climbed about 3% the previous week. The Sensex ended at 73,852.90, down 876.37 points, or 1.17%, while the Nifty 50 lost 257.20 points, or 1.11%, to 22,888.95.
Both indexes reached lower intraday levels before recovering some ground. The Sensex touched 73,708.54, while the Nifty 50 hit 22,845.00.
Axis Bank shares dropped 4.19% on the National Stock Exchange (NSE) even as the bank reported standalone profit after tax of ₹7,003 crore for the quarter ended Sept. 30, up 38% from a year earlier. HDFC Bank fell 2.31%.
The sell-off also reduced the combined market capitalization of companies listed on the BSE. NDTV Profit reported, citing BSE data, that the total stood at ₹468.80 trillion at 4:40 a.m. ET (08:40 UTC), or 2:10 p.m. IST, on Oct. 19, compared with ₹473.47 trillion at the Oct. 16 close. The ₹4.67 trillion difference was an intraday snapshot, not an end-of-day total or a sum of realized investor losses.
Reuters reported that 15 of 16 major sectors declined and said private banks faced pressure as investors assessed earnings expectations and narrower margins. Public-sector banks rose, while high oil prices added pressure across the market, Reuters reported.
Reuters quoted Siddhartha Khemka, head of research, wealth management at Motilal Oswal Financial Services, as saying profit-taking after the previous week’s rally contributed to the decline. NDTV Profit described that week as the benchmarks’ strongest since April.
The NSE is closed Tuesday, Oct. 20, for Dussehra.
