Sensex Today Tanks 634 Points | 4 Reasons Why Indian Share Markets Fell Today | JSW Steel Slips 4%

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After opening the day on a negative note, Indian share markets extended losses as the session progressed and ended deep in the red.

Indian shares declined with metal stocks leading a broad-based retreat as investors fretted over the rising COVID-19 cases in China and the Federal Reserve's interest-rate hiking path.

At the closing bell, the BSE Sensex stood inched lower by 634 points (down 1%).

Meanwhile, the NSE Nifty closed lower by 190 points (down 1%).

Divis Laboratories, HDFC Life, and Maruti Suzuki were among the top gainers today.

JSW Steel, Hindalco, and Coal India on the other hand, were among the top losers today.

The SGX Nifty was trading at 18,111, down by 195 points, at the time of writing.

Broader markets settled on a negative note. The BSE Midcap fell 0.9% while the BSE SmallCap index dived 0.8%.

If you're looking to midcap stocks that offer growth in the long run, check out the 5 midcap stocks for long term.

All sectoral indices ended on a negative note with stocks in the metal sector, realty sector, and energy sector witnessing most of the selling.

Shares of GIC of India and Equitas Holdings hit their 52-week highs today.

If you're interested in knowing which shares to trade, read our guide on the best intraday stocks for today.

Asian stocks ended on mixed note.

The Hang Seng inched higher by 3.2%, while the Shanghai Composite index ended higher by 0.2%. The Nikkei edged 1.5% lower.

US stock futures are trading on a positive note. Dow futures are trading up by 0.3% while Nasdaq futures are trading higher by 0.7%.

The rupee is trading at 82.8 against the US$.

Gold prices for the latest contract on MCX are trading higher by 0.8% at Rs 55,971 per 10 grams.

Meanwhile, silver prices for the latest contract on MCX are trading up by 1.1% at Rs 70,650 per kg.

Here are four reasons why Indian share markets plunged today.

#1 Volatility ahead of Fed meeting minutes release

The minutes of the Fed's December meeting are due during US business hours. The central bank raised rates by 50 basis points last month after four straight 75-bps hikes and signaled rates could stay higher for longer.

#2 Covid worries

Covid problems rising in China have created the uncertainty over demand recovery. This sudden spurt has worried investors across the globe.

#3 Rupee factor

The rupee has been falling for quite some time now. Today, continuing the trend, rupee depreciated 8 paise to 82.9 against the dollar, tracking strength of the dollar and a negative trend in domestic equities.

Rupee's depreciation often leads to discontinuation of FPI buying in India.

#4 Wall Street Cues

Wall street indices ended sharply lower which spread negative sentiment across the globe. The Dow Jones ended marginally lower while the cut was sharper in the Nasdaq at 0.8%. This sharp decline was on the back of fear of Fed's rate hike.

Speaking of stock markets, the Tata group is gearing up to bring another TCS to the market - Tata Electronics.

The recent development that has put Tata Electronics in the spotlight is Tata Sons Chairman Natarajan Chandrasekaran confirming the company's plans to venture into the semiconductor business, which is pegged to reach US$ 1 trillion revenue by 2030 globally.

Tata Electronics could get listed anytime in 2023.

In the below video, co-head of research Tanushree Banerjee talks about how this Tata group stock can ride tailwinds that TCS rode for decades.

Yes Bank Q3 deposits rise 16%

In the news from the private bank sector, share price of Yes bank was tracked closely today.

Yes Bank on Wednesday said that its advances were up at Rs 1,968.3 bn, from Rs 1,762.4 bn, up nearly 12% year-on-year (YoY).

The lender's deposits rose to Rs 2,1336.1 bn during the December 2022 quarter, up by 16% YoY.

Its credit to deposit ratio stood at 89.7% during the October-December 2022 period, as compared to 96.1% from the September 2022 quarter and 95.6% in the December 2021 quarter.

Further, its Liquidity Coverage Ratio (LCR) rose to 119.5% versus 105% QoQ, slipped from 130% YoY.

Last month, the private sector lender transferred stressed assets of Rs 480 bn to JC Flowers Asset Reconstruction. This move will wipe the bank's book clean of dud assets.

Note that Yes Bank share price crashed from its all-time high of Rs 393 in August 2018 to under Rs 11 over the next two years.

The story is a classic example of how a popular stock has turned into a penny stock.

With the latest developments, the downside risk from here seems limited. The upside opportunity to become a HYPERLINK "https://www.equitymaster.com/timeless-reading/multibagger-stock-for-next-10-years" \t "_blank"multibagger stock for next 10 years could be substantial.

For more, check out our recent editorial on Yes Bank: Is it Time to Say "YES" to this Bank?

HDFC Bank's loan book expands by 19.5%

Moving on to news from the bluechip stocks space, shares of HDFC Bank were among the top buzzing stocks today.

HDFC Bank's loan book expanded by 19.5% on Year on Year (YoY) basis to Rs 15.1 trillion (tn) as of 31 December 2022, higher than the banking industry's growth of 17.4% YoY in December.

On a sequential basis, the lender posted a growth of about 1.8% over Rs 14.8 bn as of September 2022 quarter.

Domestic retail loans grew by around 21.5% YOY and sequentially 5% over September 2022 quarter.

The pace of loan expansion in commercial and rural banking loans was much stronger at around 30% YoY. The corporate and other wholesale portfolios grew by 20% YoY.

Retail deposits increased by around 21.55 YoY, while wholesale deposits grew by 11.5% YoY.

The Current Account and Savings Account (CASA) also registered a growth of 12% YoY to approximately Rs 7.6 tn.

The pace of liabilities was 19.9% YoY, much higher than the banking industry's growth of 9.4% in December 2022.

During the quarter that ended 31 December 2022, the bank purchased loans aggregating Rs 88.9 bn through the direct assignment route under the home loan arrangement with mortgage major Housing Development Finance Corporation (HDFC).

The housing finance company is slated to merge with HDFC Bank.

HDFC Bank is amongst the best bank in India.

If you had invested Rs 10,000 in HDFC bank's IPO in 1995, today, your investment would have grown to Rs 152 m. With this stellar return over the years, it is among India's favorite stocks.

Ambuja Cement forms subsidiary

Moving on to news from the cement sector, shares of Ambuja Cement were also in focus today.

Ambuja Cements today announced that the company has incorporated a wholly owned subsidiary company in the name of Ambuja Shipping Services Limited on 3 January 2023.

The company is incorporated by Ambuja Cements for the business of operating ships. The company has acquired 100% shareholding at the cost of Rs 10 m.

The subsidiary is incorporated in India and registered with the Registrar of Companies, Gujarat, at Ahmedabad and is yet to commence its business operations.

The company is a part of the Adani Group. Previously it was a part of the Holcim Group (formerly known as LafargeHolcim), a global leader in providing green building solutions in 70 markets across five continents.

The stock has been in focus for quite some time due to consolidation with Adani Group buying Ambuja Cements and ACC.

To know what's moving the Indian stock markets today, check out the most recent share market updates here.

For information on how to pick stocks that have the potential to deliver big returns, download our special report now!

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