The BSE Sensex experienced a decline of more than 500 points on Tuesday, led by a downturn in banking stocks. The BSE Sensex is currently trading at 70,855.44 points, down 568.21 points or 0.80 percent. Key banks such as IndusInd Bank and HDFC Bank are witnessing a 3 percent drop. Additionally, consumer stocks like Hindustan Unilever and Asian Paints are down by more than 2 percent.
In the broader markets, railway stocks are experiencing a significant decline. Railtel is down 13 percent, Ircon is down 12 percent, Texmaco Rail is down 10 percent, RVNL is down 9 percent, IRFC is down 9 percent, RITES is down 8 percent, and Titagarh is down 7 percent.
Zee Entertainment shares have witnessed a massive decline of 26 percent on Tuesday, trading at Rs 170. This decline triggered the lower circuit of 30 percent.
The drop is attributed to Sony terminating its merger cooperation agreement (MCA) with Zee and seeking a termination fee of USD 90 million for an alleged breach of the MCA. In response, Zee Entertainment stated that it would evaluate all its options, including legal action.
The announcement also mentioned the resignation of Punit Goenka, Zee’s MD and CEO, a key point of contention between the two parties. As a result of these developments, Motilal Oswal Financial Services downgraded its rating on the stock to Neutral.
The report highlighted Zee's performance over the last four years, with a 14 percent decline in ad revenue from FY20-23 and ongoing market share loss in the linear TV market. The challenges faced by Zee5 in the competitive OTT landscape were also emphasized.
(With Agency Inputs)