Market witnessed its highest one-day sell-off by FIIs in six years on Wednesday; one-month inflows wiped out

The disappointing Q3 results by the private banking major HDFC Bank led to a sharp fall in headline indices on Wednesday. As per Zee Business desk, of the total slide of 460 points on the NSE 50-share index, 250 points were accounted for solely by HDFC Bank. Similarly, the lender contributed an enormous 1,150 points to the huge descent in the Bank Nifty index.

Other notable counters that led to the fall of the Nifty are ICICI Bank, Kotak Bank, SBI, and IndusInd Bank, with their weights listed separately below.

Likewise, for the Bank Nifty, which saw a humongous fall of 2,060 points, or 4.28 per cent fall, HDFC Bank was the biggest contributor, leading the losses by 1,150 points on the index, followed by other lenders, mainly private banking players including ICICI Bank, Kotak Mahindra Bank, Axis Bank, SBI, and IndusInd Bank.

After HDFC Bank saw its worst decline on an intra-day basis after the COVID-led crash in March 2020, the lender’s ADR also ended down by over 9 per cent in the overnight trade.

While weak global cues also weighed on Indian indices, a higher US bond yield of over 4 per cent, propelled a massive FII selling on the D-Street. As per Zee Business research team inputs, FIIs sold equities worth Rs 10,578 crore, roughly wiping out inflows of one month in a day. This, as per Zee Business estimates, is the highest FII selling in the cash segment after November 2017.

"If today’s drubbing at Dalal Street is any indication, then Nifty is likely to witness another uninspiring session in Thursday's session. Nifty’s biggest support is placed at the 21,421 mark, while the biggest hurdle will be at its all-time high at the 22,124.15 mark," noted Prashanth Tapse, Senior VP (Research), Mehta Equities.