The Nifty 50 witnessed a plunge of 454 points, or 2.06 percent, closing at 21,578.40, while the Sensex incurred a loss of 1,628 points, or 2.23 percent, settling at 71,500.76. The negative sentiment was driven by the notable drop in HDFC Bank's stock, contributing to the overall market decline.

Equity benchmarks, the Nifty 50 and the Sensex, experienced their most significant single-day percentage loss since June 2022 on Wednesday, January 17. This decline was primarily triggered by a substantial fall in HDFC Bank's share price.

The Nifty 50 witnessed a plunge of 454 points, or 2.06 percent, closing at 21,578.40, while the Sensex incurred a loss of 1,628 points, or 2.23 percent, settling at 71,500.76. The negative sentiment was driven by the notable drop in HDFC Bank's stock, contributing to the overall market decline.

Key stock indices experienced their worst single-day losses in percentage terms since June 13, 2022. The sharp market decline followed a recent record-breaking rally, with the BSE benchmark reaching an all-time high of 73,427.59 and the Nifty hitting its lifetime peak of 22,124.15. HDFC Bank, among the Sensex firms, saw a decline of over 8 percent after its December quarter earnings failed to meet investor expectations.

HDFC Bank reported a 2.65 percent rise in consolidated net profit for the October-December period, but concerns over elevated credit/deposit (CD) ratios beyond the RBI's comfort levels impacted market sentiments.