Equity benchmark indices took a downturn in early trading on Thursday, relinquishing the gains accumulated over the past four days. The 30-share BSE Sensex plummeted by 296.79 points to reach 73,556.15, while the NSE Nifty witnessed a dip of 97.15 points, touching 22,305.25.

Kotak Mahindra Bank plunge

Kotak Mahindra Bank faced a steep decline of over 12%, triggered by the Reserve Bank of India’s (RBI) decision to prohibit the bank from onboarding new customers online and issuing fresh credit cards. The central bank’s move came after identifying “serious deficiencies” in the bank’s IT risk management.

Market laggards and gainers

Alongside Kotak Mahindra Bank, Hindustan Unilever, Asian Paints, Titan, Maruti, and Mahindra & Mahindra witnessed significant declines. Conversely, Axis Bank, Sun Pharma, Nestle, and State Bank of India emerged as gainers in the market.

Recent market trends

The BSE benchmark had experienced a positive trend over the past four days, climbing by 1,363.95 points or 1.88%. However, the recent developments have reversed this trend.

Global market overview

In Asian markets, Seoul and Tokyo reported declines, while Shanghai and Hong Kong maintained positive momentum. Meanwhile, Wall Street exhibited mixed performance on Wednesday.

Commodity and fund movements

Brent crude, the global oil benchmark, saw a slight increase to USD 88.04 per barrel. On the other hand, Foreign Institutional Investors (FIIs) offloaded equities worth Rs 2,511.74 crore on Wednesday, according to exchange data.

Previous day’s market close

On Wednesday, the BSE benchmark had closed at 73,852.94, recording a climb of 114.49 points or 0.16%. Similarly, the NSE Nifty settled at 22,402.40, advancing by 34.40 points or 0.15%.

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