Markets shut for Dussehra after Monday's 876-point fall wiped out Rs 5.5 lakh crore

Data last updated: 20 October 2026, 1:47 PM IST

Why the banks led the fall

Private lenders did most of the damage. Axis Bank fell as much as 5 per cent to Rs 1,225 on the NSE despite reporting a 38 per cent rise in quarterly profit, to Rs 7,003 crore. The number was a little below what analysts had expected, and the details worried them more than the headline: a net interest margin of 3.36 per cent, softer fee income and higher operating costs. The bank says it is still on course for a margin of 3.8 per cent.

HDFC Bank lost about 2.3 per cent after its own results. Profit rose 4.7 per cent to Rs 19,510 crore, but the margin narrowed to 3.16 per cent from the June quarter. Both banks pointed to a surge in foreign-currency non-resident deposits, which are costly to hold, and HDFC Bank expects the full effect to show in the December quarter.

The Nifty Financial Services index dropped 1.58 per cent, more than on any day in the past fortnight. Information technology stocks gave back part of last week's recovery as traders booked profits, and the FMCG index slipped 1.44 per cent. Public sector banks went the other way, with their index up 2.46 per cent, the only major sector gauge to close higher.

The selling ran deep. Of 3,664 stocks traded on the NSE, 2,717 declined and 846 advanced, and the midcap and smallcap indices each lost more than 1 per cent. A total of 169 stocks hit 52-week lows against 70 at new highs; 144 were frozen at their lower circuit, 84 at their upper. The volatility index rose more than 5 per cent to 14.77. The market value of all BSE-listed companies fell to about Rs 467.93 lakh crore from Rs 473.47 lakh crore on Friday.

Monday was itself a heavy day for earnings, with about 35 companies reporting, Hindustan Zinc, IREDA, L&T Technology Services and Union Bank of India among them. The first hour saw sharp swings as weekly options expired.

Oil, the rupee and the foreign money

Crude oil kept the pressure on all day. Brent dipped early in the session after a United States decision to waive some sanctions provisions tied to Russia raised hopes of more supply. Then recovered to trade above $108 a barrel as tensions in the Middle East kept a floor under prices. For India, which imports most of the oil it burns, a barrel at that level means a bigger import bill, more pressure on inflation and higher costs for business.

The rupee ended at a provisional 94.92 to the dollar, down three paise, weighed down by the equity sell-off and the recovery in crude.

Foreign institutional investors sold shares worth a net Rs 1,148.64 crore on Monday, returning to the selling that has marked most of the month after a brief spell of buying on Friday. Domestic institutions were net buyers, which limited the fall but could not stop it.

Europe offered no comfort. Germany's DAX fell 1.06 per cent, France's CAC 40 lost 1.34 per cent and the Euro Stoxx 50 was down 0.97 per cent as Indian trading closed. United States index futures were a shade higher.

What Wednesday brings

About 40 companies report second-quarter results on Wednesday, among them Eternal, Adani Green Energy, Indian Hotels, Vishal Mega Mart and M&M Financial Services. Later in the week come Infosys, Tata Motors, JSW Steel and Dr Reddy's on Friday, with Kotak Mahindra Bank and IDFC First Bank on Saturday. After Monday, the margin line in every bank's results will be read first.

The backdrop is a market that had only just found its feet. Before Monday the Nifty had posted a second straight weekly gain after an eight-week losing streak, and the question traders are asking is whether 22,800 holds when the screens light up again. Two numbers will set the tone before the first trade: where Brent opens after two days without an Indian session, and whether the rupee stays on the right side of 95 to the dollar. A third is the pace of foreign selling, which has shown no sign of easing in October.

The festive calendar offers one more pause and one short celebration. The exchanges will hold their Diwali Muhurat trading session on Sunday, 8 November, the day of Lakshmi Puja, with the main session running from 2:20 pm to 3:30 pm after a brief pre-open window. Every trade made in that hour settles as usual. The next full holidays are Tuesday, 10 November, for Diwali Balipratipada, Tuesday, 24 November, for Guru Nanak Jayanti, and Friday, 25 December.