Indian stock market experiences a &#34;Black Tuesday&#34; as it is dragged down by financial stocks. The Sensex index drops over 1,000 points, and the Nifty 50 falls below 21,300 points. Zee Entertainment plunges 30% due to the failed merger with a subsidiary of Sony India.
On Tuesday, the Indian stock market opens high but then declines. In early trading, the Nifty index briefly rises by 0.8%, and the Sensex index opens up by 0.86%. However, both the Nifty 50 and Sensex indices continue to decline and close down by approximately 1.5%, reaching 21,238 points and 70,370 points, respectively.
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The decline in the financial sector is the main factor dragging down the Nifty. HDFC Bank falls by over 3%, leading the decline in financial stocks. The largest-weighted financial stocks among the 13 major sectors drop by 1.6%. HDFC has fallen by 14% since its earnings report was released last week.
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To make matters worse, Zee Entertainment plunges by 30%, marking its largest decline since January 2019. Sony plans to terminate the merger deal between its subsidiary and ZEE.
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Saurabh Jain, Assistant Vice President of Research at SMC Global Securities, points out:
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The mixed results of this earnings season indicate that specific stocks will drive the market. Due to the withdrawal of overseas investors, HDFC Bank continues to weaken, while the mid-cap index is experiencing a correction after a rise in valuation.
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The small-cap and mid-cap indices in India fall by 1.5% and 2.2% respectively. So far this year, they have outperformed the large-cap stocks, continuing the trend from last year.
Rahul Sharma, Research Head at Equity99, a stock advisory firm, states:
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Another reason for the market losses is that participants have reduced their stock positions during the volatile futures and options (F&amp;O) expiry week.
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The Sensex index in India fell more than 1,000 points, and the Nifty 50 fell below 21,300 points. Zee Entertainment plummeted 30% due to the failed merger with a subsidiary of Sony India.

Banking stocks drag down, Indian stock market experiences "Black Tuesday"