Indian equity benchmarks fell on Thursday amid selling pressure across most sectors, amid negative moves across global markets on fears of a recession and more of steep hikes in key interest rates. Losses in financial, IT, FMCG and metal shares were the top drags on both headline indices. 

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The Sensex shed as much as 329.2 points or 0.5 per cent to 60,716.6 in early deals and the Nifty50 slid to as low as 18,063.8, down 101.6 points or 0.6 per cent from its previous close.

As many as 31 stocks in the Nifty50 basket struggled below the flatline in morning deals. Adani Enterprises, Titan, Hindalco, Adani Ports, Tata Motors, Hindustan Unilever, Apollo Hospitals and Kotak Mahindra Bank -- declining around 1-4 per cent -- were the top laggards. 

On the other hand, UPL, Tata Steel, HDFC Life, ONGC, Axis Bank, Grasim and SBI Life -- rising between 0.5 per cent and 1.6 per cent -- were the top gainers. 

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Analysts awaited more of India Inc earnings for domestic cues, with Asian Paints and Hindustan Unilever due to report their quarterly numbers later in the day. 

"A crucial issue influencing equity markets globally is whether the US will succeed in containing inflation without falling into a recession. There is no consensus on this. When data indicate a possible recession, US markets go down and all other markets are impacted. Conversely, when data indicate the US economy dodging a recession, US markets go up, triggering a rally in all other markets. This volatility will continue till there is clarity on the US recession issue," said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

"Early Q3 results indicate a good performance by IT and banking," he said. 

Global markets

Equities in other Asian markets began the day in the red, with MSCI's broadest index of Asia Pacific shares outside Japan declining 0.7 per cent at the last count. Japan's Nikkei 225 was down 1.1 per cent.

S&P 500 futures were down 0.2 per cent, indicating a weak start ahead on Wall Street. On Wednesday, the S&P 500 fell 1.6 per cent and the Dow Jones dropped 1.8 per cent -- their biggest fall in more than a month -- and the tech stocks-heavy Nasdaq Composite finished 1.2 per cent lower. 

(This story will be updated shortly)

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