Market Review: Union Bank, Trent, Havells, Ashok Leyland, OLA, Canara Bank Among Top Losers

Indian Stock Market Plummets Amid Rising Geopolitical Tensions

The Indian stock market experienced a significant sell-off on Thursday, April 23, as investors grappled with escalating geopolitical tensions, surging crude oil prices, and uncertain prospects for further talks to end the conflict with Iran.

The week began with a sense of optimism regarding potential peace in the Middle East, but that sentiment eventually dissipated, leading to higher crude oil prices and renewed concerns over inflation. This shift in market sentiment turned risk-off, causing a decline in the Nifty 50. The index dropped 0.86% to settle at 24,169, while the S&P BSE Sensex closed at 77,635, down 1.12% from Wednesday's close.

The broader markets, which had outperformed key indices in recent sessions, failed to sustain the rally. Both the Nifty Midcap 100 and Nifty Smallcap 100 indices closed lower with losses of up to 0.60%.

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Higher crude oil prices dragged auto stocks lower, causing the Nifty Auto index to drop 2.28%, making it the top sectoral laggard. The Nifty PSU Bank and Nifty Consumer Durables indices slipped 2.10% and 1.82%, respectively. Other sectors such as Nifty Realty and Nifty Private Bank also declined by over 1%. After losing 4% in the previous session, the Nifty IT index fell another 1%.

Foreign investors resumed their selling streak, reacting to the recent escalation in the US-Iran situation, elevated oil prices, and currency movements. Tensions remain high as the US and Iran failed to meet for a fresh round of peace talks, with both sides blocking the Strait of Hormuz to gain leverage during an extended ceasefire. Tehran has indicated that it has no immediate plans to participate in negotiations.

The top laggards were largely led by auto and financial stocks. IIFL Finance led the list, plummeting 10.3% to ₹419.5 apiece. Union Bank of India shares shed 7.5% to ₹179.5 apiece after the PSU lender's Q4 numbers fell short of Street estimates. Losses in Bank of Maharashtra further extended, with the stock falling 3% to ₹77.4 apiece. Other lenders such as Canara Bank, Bank of Baroda, Punjab & Sind Bank, Central Bank of India, and Punjab National Bank also dropped over 2%.

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Among auto stocks, Ashok Leyland lost a sharp 4.7% of its value, falling to ₹170.6 apiece. It was followed by TVS Motor Company, Samvardhana Motherson, and Hero MotoCorp, all of which closed lower with losses of up to 3%. Ola Electric also gave up some of its recent gains, tumbling 3% to ₹37.4 apiece. Lower-than-expected Q4 numbers dragged Havells India shares down by 6.55% to ₹1,260 apiece. Likewise, Trent shares skidded 4% to ₹4,251 after its March quarter results. New-age tech stocks such as CarTrade Tech and Delhivery finished the session lower by 5.24% and 3%, respectively. Infosys shares declined 2.21% to ₹1,240.6 apiece ahead of its Q4 results.