- Sensex falls 300 points as global factors weigh on markets; Nifty at 25,200.
- Deep Energy Resources surges 20% after NCLT merger approval.
- AU Small Finance Bank shares rise following Universal Bank transition plan.
On Wednesday, the Indian stock market experienced a sharp downturn, with the Sensex falling 300 points and the Nifty slipping to 25,200. Volatility rose, reflected by a spike in the India VIX index.
Sectors like IT, Auto, and Financials faced significant losses, driven by weak global cues and profit-taking after a record 14-day rally in the Nifty 50 index.
Market Sees Correction as Sensex Drops; Pharma and Energy Stocks Shine
Despite the overall weak market sentiment, select stocks witnessed positive momentum. Deep Energy Resources saw its shares jump 20% after the NCLT approved its merger plan. AU Small Finance Bank also gained traction as it applied for a transition to become a Universal Bank, boosting its shares by 2.3%.
Amidst the downturn, Deep Energy Resources emerged as a standout performer, with its stock hitting the upper circuit, soaring by 20%. This sharp rise followed the NCLT’s approval of its merger plan, which brought renewed investor interest in the company. Similarly, Natco Pharma saw its stock rise by 3%, driven by news of its Canadian subsidiary’s $8 million investment in eGenesis, Inc., a biotechnology firm.
Piramal Pharma also defied the broader market trend, surging 12% in intraday trading to hit a record high. Heavy volumes of trading boosted the stock, with a notable increase in investor confidence. On the other hand, Wipro and Coal India were among the top laggards, facing significant pressure in a challenging market environment.
AU Small Finance Bank drew attention as well, with a 2.3% increase in its share price following the bank’s submission of an application to the Reserve Bank of India. This application aims to transition the bank from a Small Finance Bank to a Universal Bank, marking a significant step in its growth trajectory.
While the market experienced a broad-based decline, specific stocks within the energy, pharma, and finance sectors showcased resilience. These standout performers indicate that investor interest remains strong in selective areas despite overall market challenges.
“The stock market is filled with individuals who know the price of everything, but the value of nothing.” — Philip Fisher
