Indian market ended the September futures and options expiry day on a weak note with the NSE Nifty50 breaching 11,000 mark and the BSE Sensex closing below 36,400. The major fall though, was seen in broader markets with the Midcap Index erasing 411 points to end the session at 13-month closing low of 17,510, and Nifty Bank slipped 334 points to 25,042.
Market Breadth stayed in favour of declines with the NSE advance-decline ratio at 1:3 at the close. IT stocks moved higher as the rupee slipped lower against the US dollar, failing to hold on to the opening gains.
Financials were the major drag on the Nifty with 4 of top 5 losers being HDFC, Kotak Mahindra Bank, Yes Bank and ICICI Bank. The 50-stock NSE Index dropped 76 points to 10,977.55, while the 30-share Sensex fell 218 points to 36,324.
From the financial space, Yes Bank and Indiabulls Housing tanked 10 percent and 11 percent. Not just that, Yes Bank’s market cap now stands below that of the ICICI Prudential and SBI Life. The Rana Kapoor-led bank is now 14th ranked in terms of market cap in the BFSI space.
For the September series, Nifty and Sensex ended 6 percent down, Nifty Bank 11 percent and the Midcap Index 12 percent.
Yes Bank, Indiabulls Housing, Bajaj Finance, Maruti were the biggest losers, while defensive bets of IT and pharma stocks, particularly HCL Tech, Dr Reddy’s, Wipro and TCS, gained the most.
Nifty September Futures closed at 10,979 and October Futures at 11,044. For the October contract, Nifty added 67 lakh shares to the open interest with total positions currently at 1.7 crore shares.
Asia markets were largely negative on Thursday, after US Federal Reserve chairman Jerome Powell's comments on inflation after raising interest rates.
The Nikkei 225 in Japan ended the trading day lower by 1 percent at 23,796.74, with most sectors closing lower.
Down Under, the ASX 200 slipped by 0.18 percent to close at 6,181.2, with shares of Commonwealth Bank of Australia lower by 0.14 percent.
In the Greater China region, Hong Kong's Hang Seng index was lower by 0.4 percent. The Shanghai composite fell 0.54 percent to close at 2,791.78 while the Shenzhen composite slid by 1.26 percent to 1,429.61.
In South Korea, the Kospi bucked the overall trend to close higher by 0.7 percent at 2,355.43, with shares of industry heavyweight Samsung Electronics advancing by 0.21 percent.