The Nifty Bank faced a downturn on January 23, primarily triggered by a 3 percent drop in key heavyweight HDFC Bank, accompanied by a broader sell-off in other banking stocks. All index constituents, with the exception of ICICI Bank, traded in negative territory as quarterly earnings reports from various lenders continued to pour in.
As of 12:40 pm, HDFC Bank registered a 3 percent decline, trading at Rs 1,434.45 and extending losses from the previous week, where the stock had witnessed a 15 percent drop. Investor sentiment turned bearish on HDFC Bank following the release of its December quarter financials, which indicated pressure on margins, sluggish deposit growth, and a decadal low in earnings per share (EPS).
The impact of HDFC Bank’s decline reverberated across other banking stocks, particularly as their own quarterly numbers were disclosed. IDFC First Bank experienced a significant drop of over 6 percent, while Punjab National Bank slipped by 4 percent. IndusInd Bank and AU Small Finance Bank were also among the top losers. In contrast, ICICI Bank emerged as the sole gainer, rising by 2.5 percent amidst the overall banking sector downturn.