Sensex slumps over 700 points, Nifty below 19,000. What is happening?
Market in red! Sensex rallied over 700 points behind on Wednesday to 66,958 points, whereas, Nifty dragged down below 19,000 points. Experts believe Sensex is rallying owing to drags in HDFC Bank, after the country’s largest private lender flagged a hit to its asset quality post its merger with HDFC Ltd.
As per reports, HDFC Bank’s shares sliped nearly by 3.5% after the merger with HDFC Ltd was complete, charting it to Nifty 50’s top loser’s list. Concern was raised by the owner that the recent hit would affect some key financial ratios such as its net interest margin and non-performing assets.
However, experts said there will be no impact on Indian stock market as a result of straining relations between India and Canada after Trudeau’s allegation in connection with pro-Khalistan terrorist Hardeep Singh Nijjar’s killing.
Intestors are likely to tread carefully as US Federal Reserve will come up with its outcome after a two-day meeting by Wednesday. The Fed Reserve is expected to opt for a pause this time which further led traders to take hawkish stance.
