Early gains in Sensex erased as Kotak Bank declines; FIIs continue selling pressure
Equity benchmark indices opened on a strong note Monday, led by gains in blue-chip HDFC Bank, but soon reversed course as Kotak Mahindra Bank faced significant declines and foreign fund outflows continued. The BSE Sensex initially surged 545.27 points, reaching 81,770.02, while the NSE Nifty climbed 124.25 points to 24,978.30. However, the early rally was short-lived as profit-taking set in, dragging the indices lower. The Sensex was down 136.52 points at 81,060.86, and the Nifty fell 100.70 points to 24,753.35.
Key gainers in the Sensex pack included Titan, HDFC Bank, Asian Paints, Axis Bank, Tata Steel, and HCL Technologies. HDFC Bank jumped nearly 3% following its strong quarterly results. The bank reported a 6% rise in net profit for the September quarter, posting Rs 17,825.91 crore on a consolidated basis.
On a standalone basis, HDFC Bank's post-tax profit grew to Rs 16,820.97 crore, compared to Rs 15,976.11 crore a year ago. Meanwhile, Kotak Mahindra Bank saw a sharp decline of over 5%, disappointing investors with its quarterly earnings report. Bharti Airtel, IndusInd Bank, Mahindra & Mahindra, and NTPC were also among the major losers.
In the broader Asian markets, Seoul, Tokyo, and Shanghai traded higher, while Hong Kong remained in the red. US markets ended positively on Friday. Foreign Institutional Investors (FIIs) sold off equities worth Rs 5,485.70 crore on Friday, continuing to exert pressure on the markets. On the other hand, Domestic Institutional Investors (DIIs) provided some support by purchasing equities worth Rs 5,214.83 crore.
Global oil benchmark Brent crude saw a modest rise of 0.44%, trading at USD 73.38 per barrel. On Friday, the BSE Sensex had recovered from early losses to close 218.14 points higher at 81,224.75, and the Nifty ended 104.20 points up at 24,854.05.