After acute optimism yesterday on US likely coming up with major stimulus package to tide over the crisis at hand, Indian indices lost in today's session by a huge 600 or over 1% in the session today. On the Nifty too lost 150 odd points at the time of writing this copy.
Here are some of the possible reasons for the slide in the indices today:
1. Drag in heavyweight stocks including HDFC twin, ICICI Bank and RIL:
The heavyweights have lost some strength in today's session and there has been a dent in the stock of HDFC Bank after the SEBI has fined Rs. 1 crore owing to its invocation of pledged shares in the matter of a brokerage house. Reliance Industries which in 3-4 session's time saw some comeback with gains of over 7% was also weak in trade today by 2%.
2. Metal stocks continue to see weakness:
Metal pack was another sector loser in trade which is seeing a drag now for some time with losses to the tune of 4 percent led by losses in JSW Steel, Hindustan Zinc, Tata Steel, Hindalco and SAIL. No constituent in the pack is seeing any kind of upmove.
3. Private sector bank woes also weigh:
Apart from HDFC Bank, Nifty Private Bank has seen a decline of 3 percent. Bandhan Bank saw a topple over 10% in trade today after its asset quality for the third quarter show remarkable weakness
Other Bank that saw weakness is the Yes Bank which slumped up to 3 percent just ahead of its Q3 results.
4. NBFC pack also sees disruption:
There is a fall seen in the NBFC pack with stocks like Shriram Transport, Bajaj Finance, IndiaBulls Housing Finance among others.4.
5. Weakness across global markets:
Now after hopes of economic revival as focus is seen to be shifting to corporate earnings, Japanese Nikkei index fell from its 30 year peak and the trend was even mirrored in the European markets which are also dragged today.
In fact the US stock futures also point to a sombre opening in the US markets with a decline of 200 points on the indices.