Indian stocks opened weaker as heavy selling in Axis Bank and lingering pressure on HDFC Bank dragged the benchmarks lower, even after a strong run in the previous two sessions. The Sensex fell about 100 points and the Nifty hovered near 23,100 as investors locked in gains ahead of a holiday-shortened week packed with banking earnings and global risk cues.
Axis Bank Falls as Nifty Holds Near 23,100
Axis Bank was the biggest drag among the major private lenders, slipping around 3% even after reporting a 35.6% rise in standalone quarterly profit to 7,003.3 crore rupees and an 11.8% increase in net interest income to 15,371.4 crore rupees. The stock had already climbed sharply in recent sessions, and the pullback suggests traders are taking profits rather than rewarding the numbers immediately.
Sentiment Indicators
HDFC Bank also weighed on the market, with the stock under pressure around 706.95 rupees, close to its 50-day moving average and still below its longer-term trend. The weakness in the two heavyweight lenders matters because banks carry outsized influence on the Nifty and Sensex, and any loss of momentum there quickly spills over into the broader market.
The selloff in financials comes even as broader sentiment had improved last week on better-than-expected IT earnings and a rebound in benchmark indices. The Nifty had recently reclaimed the 23,100 level, but traders now see resistance near 23,200-23,250, with support around 22,900-23,000, according to market strategists.
Global cues are offering little help. U.S. stocks fell on renewed concern over AI-related valuations and higher oil prices, while investors remain alert to geopolitical tensions around the Strait of Hormuz and swings in crude. Brent was still above 108 dollars a barrel after recent volatility, keeping inflation and margin risks in focus for India.
Foreign exchange and fixed-income moves are also part of the backdrop, with India’s reserves falling by 8.58 billion dollars to 726.03 billion dollars in the latest reported week. For investors, the immediate focus now shifts to the next round of bank results, foreign fund flows and whether the Nifty can hold above the 22,900-23,000 zone without a deeper pullback.
| Entity | Gains | Losses |
|---|---|---|
| Bank index bears | ▲Lower valuations | ▼Missed upside |
| Axis Bank shareholders | ▲Profit booking opportunity | ▼Short-term price drop |
| HDFC Bank bulls | ▲Possible support near trendline | ▼Near-term weakness |
| Nifty longs | ▲Rebound if 23,000 holds | ▼Breakdown risk below support |
