Stocks in Focus: Yes Bank, Tata Power, and Asian Paints Face Pressure Amid Market Swings

The equity benchmark indices bounced back by nearly 1.5% from their lows during Friday’s trading session, following some buying activity after experiencing four consecutive days of losses.

The Sensex, which had fallen over 2% in the previous session, opened lower and dropped by as much as 445.24 points to reach a low of 82,051.86. Similarly, the Nifty lost 155.55 points, hitting an intra-day low of ₹25,094.55. However, the markets quickly recovered. The Sensex climbed 1,295 points from its low, reaching a high of 83,347, while the broader Nifty rose 378 points from its low to reach a peak of 25,472.65.

Investor worries increased this week after Iran launched ballistic missiles at Israel, leading to concerns that tensions could disrupt oil supplies from the region. As a result, oil prices rose, which is problematic for countries like India that heavily rely on oil imports, significantly impacting their import bills.

Among the Sensex stocks, Reliance Industries, HDFC Bank, L&T, Axis Bank, and ICICI Bank collectively caused the index to drop by 1,015 points, while JSW Steel was the only stock to gain. The Nifty Oil & Gas index also fell by more than 2.7%, affected by worries over the escalating conflict in the Middle East. Hindustan Petroleum, Oil India, and BPCL were the worst performers on the index, with declines of 5-7%. Additionally, the India VIX, a measure of market volatility, surged by 9.86% to reach 13.17.

Stocks in Focus

• Yes Bank Ltd

Yes Bank Ltd. share price opened at ₹21.97 and reached a day high of ₹22.27 as of 01:25 PM. Over the last 5 days, the share price has decreased by 3.38%. In the past 6 months, it has recorded a decline of 11.73%, while over the last year, the shares have shown a positive return of 27.79%.

• Tata Power Company Ltd

Tata Power Company Ltd’s share price opened at ₹471.50 and reached a day low of ₹460.60 as of 01:33 PM. Over the last 5 days, the share price has decreased by 2.47%. In the past 6 months, it has given a return of 12.82%, while over the last year, the shares have shown a positive return of 82.04%.

• Jio Financial Services Ltd

Jio Financial Services Ltd’s share price opened at ₹343.50 and reached a day low of ₹336.50 as of 01:33 PM. Over the last 5 days, the share price has decreased by 2.61%. In the past 6 months, it has given a return of -5.69%, while over the last year, the shares have shown a positive return of 51.72%.

• Asian Paints Ltd

Asian Paints Ltd shares opened at ₹3,135.00 and reached a day low of ₹3,065.25 as of 01:40 PM. Over the last 5 days, the share price has decreased by 6.46%. In the past 6 months, it has given a return of 5.27%, while over the last year, the shares have shown a negative return of -3.09%.

• Larsen and Toubro Ltd

Larsen and Toubro Ltd share price opened at ₹3,515.00 and reached a day low of ₹3,468.50 as of 01:43 PM. Over the last 5 days, the share price has decreased by 5.54%. In the past 6 months, it has given a return of -8.25%, while over the last year, the shares have shown a positive return of 15.09%.

Key Factors Behind the Decline

• Iran-Israel Conflict

Indian stocks fell sharply on Thursday amid rising concerns over the growing hostilities between Iran and Israel. Reports indicated that the Israeli military confirmed the deaths of eight soldiers during ground operations in southern Lebanon. This situation escalated following Iranian missile strikes on Tel Aviv, prompting warnings of a possible Israeli response. 

• Increase in Crude Oil Prices

Oil prices have risen due to fears that the escalating tensions in the Middle East could threaten supplies from major oil producers. Brent crude briefly exceeded $75 per barrel, while West Texas Intermediate rose above $72, with both benchmarks increasing nearly 5% over the last 3 days. A rise in oil prices negatively impacts countries like India, which significantly depend on oil imports.

• SEBI Tightens F&O Regulations

The market regulator SEBI’s recent decision to tighten rules in the futures and options (F&O) market has also contributed to the decline in equity markets. Analysts noted that these new measures, including limiting weekly expirations to one per exchange and increasing contract sizes, could reduce retail trading volumes and dampen market sentiment. This uncertainty around trading conditions has likely added to investor concerns amidst wider geopolitical tensions.

• Concerns About China

Investors in India are increasingly worried about a rebound in Chinese stocks, which have lagged in performance in recent years. Following the Chinese government’s announcement of economic stimulus measures last week, analysts predict ongoing growth in Chinese stocks, which could lead to a potential outflow of funds from Indian markets.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.