Stock Market Update: Nifty near 17,800, Sensex corrects by more than 500 points; IT, banking stocks drag
The Indian market has been trading lower in the afternoon trade as fears of imported inflation and anticipating aggressive rate hike by US Federal Reserve weigh on the domestic equity market.
The Indian market has been trading lower in the afternoon trade as fears of imported inflation and anticipating aggressive rate hike by US Federal Reserve weigh on the domestic equity market. Benchmarks Nifty50 and the S&P BSE Sensex edged lower by more than 0.7% in the afternoon trade as global cues and geopolitical tension continue to drive the market. After slipping below 17,800, the broader Nifty was trading near 17,800, while the 30-share Sensex was trading lower by more than 500 points.
Outperforming the headline indices, Nifty midcap and smallcap rose up to 0.5% in the afternoon trade as India's Volatility Index (India VIX) neared 19-mark.
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The Nifty Bank declined more than 1% as banking and financial stocks were among top losers.
Sectorally, buying interest was seen in metal, oil & gas and PSU Bank stocks.
However, Banking & financial services, IT, media, realty and auto stocks dragged the market.
Coal India, NTPC, Tata Steel, UPL, PowerGrid Bharti Airtel, L&T, Nestle India, State Bank and ITC gained in a falling market. HDFC twins (HDFC Bank, HDFC Ltd) led the losers' pack as they corrected up to 3%, while HDFC Life, Tech Mahindra, HCL Tech, TCS, M&M and Kotak Bank were among leading laggards on Wednesday.
"Data relating to GST and credit growth indicate smart economic recovery and corporate tax collections for FY 22 indicate earnings momentum. But since valuations are again high, there will be selling at higher levels. Therefore the market is likely to consolidate around current levels with subdued volatility in the near term," VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said in market opening commentary.
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