FINAL TRADE: Nifty cracks below 21,850, Sensex falls 736 pts amid broad-based sell-off; IT stocks worst hit

Stock market today: Domestic benchmarks fell on Tuesday, March 19 dragged by a sell-off in IT shares, led by a sharp slide in Tata Consultancy Services (TCS) shares and Fast Moving Consumer Goods (FMCG) stocks ahead of the US Federal Reserve's rate decision due on Wednesday, which could also determine the extent of foreign fund inflows into the market.

The Nifty index ended 238.25 points or 1.08 per cent lower at 21,817.45 and the Sensex lost 736.37 points or 1.01 per cent for the day to settle at 72,012.05. TCS, BPCL, Cipla and Britannia were among the top losers, down nearly 4-3 per cent in the Nifty basket. On the other hand, Bajaj Auto, Bajaj Finance, Eicher Motors and Kotak Bank were among the top gainers.

"Following the BoJ's decision to hike interest rates for the first time in 17 years, the Asian peers’ mood turned sour, which pulled the Indian market to continue its recent pessimism. The correction in the domestic market has also been triggered by concerns over premium valuations and the delay of rate cuts by the US Fed due to hotter than expected inflation, which is evident from the upward trend in the dollar index," Vinod Nair, Head of Research, Geojit Financial Services said. 

Nifty IT fell 2.9 per cent or 1,071.4 pts to close at 35,814.65 dragged by complete space, where TCS, and LTTS were among the worst hit. Broader indices Nifty Smallcap100 underperformed the headline gauges to settle 1.19 per cent lower while Nifty Midcap100 ended 1.24 per cent lower, respectively. Meanwhile, Nifty Bank shed 191.1 points or 0.41 per cent to settle at 46,384.80. 

Investors lost Rs 4.84 lakh in wealth as the market capitalisation of BSE-listed companies declined to Rs 3,73,94,593 at the end of trade on Monday from Rs 3,78,79,323.43 on Friday, according to provisional exchange data.

"Investors are exercising caution as they await the upcoming US Fed meeting, seeking indications on the potential timing of a reversal in the rate cycle. Additionally, the gradual increase in crude oil prices is further dampening market sentiment," he added. 

Global Market

European stocks were subdued on Tuesday as losses in technology shares offset gains in consumer staple stocks ahead of key euro zone economic data due later in the day. The pan-European STOXX 600 index was down 0.1 per cent by 8:24 GMT, led by a 0.6 per cent selloff in technology shares.

Investors will look out for fourth-quarter euro zone data on wages and labour costs, along with Germany's ZEW economic sentiment survey for March, all due for 1000 GMT.

(with agency inputs)

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