₹12 Lakh Crore Gone in One Session.
Yesterday Indian markets wiped out ₹12 lakh crore of investor wealth in a single session and out of that ₹1.10 lakh crore was lost from HDFC Bank alone. The trigger was eight words from HDFC Bank chairman Atanu Chakraborty’s resignation letter, “certain happenings and practices within the bank are not in congruence with my personal values and ethics.” No specifics, no names, just eight words that sent the stock crashing 8.6% to a 52 week low of ₹770.
Nobody actually knows what those practices are. HDFC Bank’s own CEO said “we are not sure what triggered the resignation.” RBI stepped in quickly saying the bank has sound financials and appointed Keki Mistry as interim chairman for three months. But when a former Economic Affairs Secretary resigns citing ethics from India’s largest private bank, market does not wait for explanations .
The broader market fall was already building before HDFC Bank news hit. Crude oil crossed $111, Fed signaled no rate cuts anytime soon and Iran issued warnings near Gulf energy facilities. HDFC Bank news on top of all this was simply the last push that broke whatever was holding the market together, Sensex ended 2,500 points lower.
Eight words from one person erased ₹1.10 lakh crore in hours, what does that tell you about how fragile market sentiment is right now? JP Morgan maintained Neutral saying stock will trade weak for some time. RBI’s quick reassurance suggests system is in control but the damage is done. What do you think, overreaction or a genuine warning sign? Drop your thoughts