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Markets rebound: Sensex rises 600 points in early trade after three-day fall; Nifty at 21,610
After falling continuously for three days, Sensex and Nifty recorded a significant spike on Friday.
After three days of a straight decline, both BSE Sensex and NSE Nifty opened in green, rising by over 600 points and 170 points, respectively.
The blue-chip NSE Nifty 50 rose 0.70% to 21,610.70 points, while the S&P BSE Sensex gained 0.79% to 71,767.14%, as of 9:16 a.m. IST.
This comes just a day after the Indian stock markets struggled to reach its past potential, touching its lifetime-high this week itself. Both Sensex and Nifty crashed continuously for two days after HDFC Bank released its quarterly results for December 2023.
On January 17, Sensex and Nifty both experienced a major crash a day after HDFC Bank released its Q3 results, with the share prices of the private lender collapsing over 9 percent in just one session.
On that day, Sensex crashed over 1600 points while Nifty crashed over 430 points in a single session, the biggest fall in the NSE benchmark witnessed since 2022.
The stock market collapse took place in the same week as its all-time high, with BSE Sensex crossing the historic 73,000 points mark and Nifty crossing the 22,000 mark for the first time. While markets crashed for three consecutive days, it is expected that both Sensex and Nifty will show gradual recovery over the next week.
The downfall of the stock market this week was triggered by the collapse of Nifty Bank after HDFC's quarterly results showed stagnant margins, similar to the previous quarter.
Nifty Bank shows mild recovery
As markets opened on Friday, Nifty Bank was up by over 430 points, showing a slow and steady recovery after falling 2060 points on Wednesday, with the shares of all major private lenders under strain.
The impact of HDFC Bank's Q3 results caused a ripple effect on the stock market, with the private lender's shares falling nearly 10 percent in a single session. This further led to the shares of Axis Bank, Kotak Mahindra and other private banks to struggle.
After falling for three straight days, HDFC Bank shares are up by 0.72 percent as markets open on January 19, standing at ₹1,496.85.
