Sensex Falls 539 Points as HDFC Bank Drags Nifty Down

Indian benchmark equity indices fell sharply towards the close of trading on Thursday, with the Sensex declining 539 points and the Nifty dropping below the 24,100 mark. Heavy selling in blue-chip HDFC Bank, along with continued geopolitical uncertainty, weighed on investor sentiment and pushed the markets lower. The decline came on the monthly derivatives-expiry day, adding to volatility during the final hours of the session.

The 30-share BSE Sensex fell 539.35 points, or 0.70%, to settle at 76,933.59, which was also the day's lowest level. The index extended its losses for a second consecutive session as selling pressure intensified towards the end of trading. Weakness in major banking stocks, particularly HDFC Bank, emerged as one of the key factors behind the decline in the benchmark.

The broader Nifty also came under pressure and slipped below the 24,100 level as investors remained cautious. Persistent geopolitical concerns added to uncertainty in global financial markets, while selling in heavyweight stocks further affected domestic sentiment. The combination of weak market breadth and losses in large-cap counters contributed to the sharp fall in the benchmark indices.

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Despite the overall weakness, several stocks managed to end the session higher. Kotak Mahindra Bank, ICICI Bank, Tech Mahindra and Bharat Electronics were among the notable gainers. Their gains, however, were not sufficient to offset the pressure created by declines in other heavyweight stocks, particularly those with a significant influence on the benchmark indices.

The market's decline also reflected heightened volatility associated with the monthly derivatives expiry. Such sessions can witness increased trading activity and sharper price movements as investors adjust or close positions. The fall in the Sensex and Nifty therefore came amid a combination of stock-specific selling, broader risk aversion and uncertainty over global developments.

The latest decline highlights the fragile sentiment in the Indian equity market as investors continue to monitor geopolitical developments and movements in major heavyweight stocks. With the Sensex ending near its day's low and the Nifty losing the 24,100 mark, market participants are likely to remain focused on forthcoming corporate developments, global cues and banking-sector performance for further direction.

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