Following the chaos on Wednesday, selling pressure persisted on Sensex and Nifty during Thursday’s trading as HDFC Bank shares continued to decline. Asian Paints and Lindtree saw declines as well following today’s reports for the December quarter. On the NSE, the IT index performed among the poorest among its sector.
“The market simply needs a catalyst for a sell-off at these high valuations, and yesterday’s catalyst was the lower-than-expected results from HDFC Bank. It’s also critical to recognise that sell-offs occurred in other emerging countries, such as Taiwan and Korea, suggesting that FPI outflows are the cause of the current correction in emerging markets. Investors might observe and wait for this volatility to pass.
The IT industry’s strength may be shown in the IT stocks’ ability to withstand this crisis. Large stocks like RIL, ICICI Bank, L&T, and Bharti, aside from IT, have the strength to weather current upheaval.
Trade highlights:
HDFC Bank shares continue to decline, dropping an additional 4%.
Shares of LTIMindtree fall 9% following Q3 earnings.
Today is IndusInd Bank’s Q3 earnings release.