HDFC Bank shares fell 2%, Sensex also fell, market under pressure due to US Fed's decision

HDFC Bank Shares: HDFC Bank shares tumbled as much as 2% in early trade on Thursday, February 20, putting pressure on Nifty and Sensex. The stock price slipped to a low of Rs 1,693 even as trading volumes saw a massive surge. By 10 am, over 50 lakh shares of the bank had been traded, which is more than half of its 10-day average trading volume. HDFC Bank stock witnessed several large deals worth over Rs 230 crore within the first few minutes of opening on NSE, which may have added to the selling pressure.

Sensex-Nifty fell for the third consecutive day

The impact of the fall in HDFC Bank shares was also seen on the Sensex and Nifty. Both these indices are trading with a decline for the third consecutive day amid weakness in financial services and automobile stocks.

Concerns about the US Federal Reserve and new tariffs

An important reason behind the fall in the stock market was the possible new tariff policy of US President Donald Trump and the comments of the recent meeting of the US Federal Reserve (US Fed). Fed officials did not show any hurry to cut interest rates, which weakened the morale of investors.

Fed officials also expressed concern over the risk of rising inflation, indicating that interest rates may remain high for a long time. US President Donald Trump's possible new tariff policy is also increasing market concerns.

However, despite today's decline, HDFC Bank shares have gained 16.4 per cent in the last one year, which is much better than the 3.1% return of Nifty 50 during this period. The market capitalization of the bank is Rs 12.95 lakh crore. However, the stock price is still down about 10% from its 52-week high of Rs 1,880 made on 9 December 2024. At the same time, it is trading about 21% above its 52-week low of Rs 1,397 made on 29 February 2024.

Also read- Stock Market Down: These 4 reasons led to the fall in the stock market, Sensex fell by 300 points, Nifty also below 22900

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