Closing Bell: Nifty around 15,800, Sensex lose nearly 1100 points; metal, banking stocks lead carnage amid weak global cues
Extending losses for the fifth consecutive trading session, the Indian markets ended with deeper cuts on Thursday as benchmarks closed with over 2% cuts
Extending losses for the fifth consecutive trading session, the Indian markets ended with deeper cuts on Thursday as benchmarks closed with over 2% cuts. Benchmarks Nifty 50 slipped below 15,900 and the Sensex tanked over 1100 points amid volatility as weak global cues wreaked havoc in the domestic equity market on Thursday.
Following headline indices, Nifty midcap and small cap indices declined around 2% as unabated profit booking continued in small cap and mid cap stocks. Amid high charged action in the broader market, India Volatility Index (VIX) rose to close above the 24-mark.
"Benchmark Indices wilted 2.5% in afternoon trade on the back of weak global cues as Investors booked gains unable to set right the puzzle around Oil, War, Currency, Inflation & Interest rates," said S Ranganathan, Head of Research at LKP securities.
Expectations of high CPI for April coupled with margin pressures seen in fourth quarter earnings is further accentuating the selling pressure in equities, which was evident in the number of stocks hitting yearly lows today as the Sensex broke 53K with all sectoral indices ending deeply in the red, he said.
"With safe-haven flows pushing the dollar index to twenty-year highs, investors now seem to be pinning their hopes on a resolution to the conflict at the earliest," the expert added
Meanwhile, Sectorally, all Nifty indices slipped in deep red with bank, metal and financial services sectors taking the maximum beatings in a negative market.
Among stocks, Adani Ports, IndusInd Bank, Tata Steel, Hndalco, Tata Motors, Bajaj twins, HDFC duo, Titan, Axis Bank and State Bank were top laggards.
Vineet Bagri, Managing Partner- TrustPlutus Wealth said overnight western markets gave up their early gains due to persistent selling in tech, leading to a broader sell-off.
"The inflation print was higher than expected, fueling the call for more aggressive rate hikes and weak global growth in CY23. And with the dollar index strengthening to 104, FIIs continue selling the EM space," he said.
Although expected global GDP growth rates for CY 22/23 are being lowered, India is perhaps the only major economy expected to grow at an average 7% over the next two years, said Bagri. "Thus, we believe that once the selling pressure abates and commodity prices/inflation start cooling off, Indian market should see a strong bounce back," added the expert.
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03:32 PM IST