The Indian market ended lower for the fifth consecutive session today as global markets turned volatile post a brief rally on Federal Reserve rate hike. Sensex tanked 1,045 points to 51,495 and Nifty ended 331 points lower at 15,360.
The market cap of BSE-listed firms fell to Rs 239.20 lakh crore today against Rs 244.65 lakh crore market cap in the previous session, translating into a loss of Rs 5.05 lakh crore. With today’s crash, Sensex is down 11.6 per cent or 6,758 points and Nifty has slumped 1,993 points or 11.49 per cent in 2022. On the other hand, Sensex has lost 1.92 per cent or 1,006 points and Nifty has lost 2.58 percent or 406 points in a year.
The 30-stock index hit an intraday low of 51,482, down 1,059 points against the previous close of 52, 541. Accounting for the intraday low, Sensex has crashed 1,705 points from the high point of the day today. The index had surged to 53,142 in the morning trade.
Similarly, Nifty tanked 348 points intraday to 15,344 (52-week low) against the previous close of 15,692. The index fell 519 points from the high point of the day. Earlier, Nifty had surged to 15,863.
The crash in the benchmark indices comes after a rally in the morning session following a surge in global peers.
Meanwhile, Tata Steel, Tech Mahindra and Bharti Airtel were the top Sensex losers falling up to 6.04 per cent. Nestle was the sole Sensex gainer, rising up to 0.30 per cent.
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BSE midcap and small cap indices slipped 513 points and 718 points, respectively.
All 19 BSE sectoral indices ended in the red.
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities said, “Markets witnessed frenzied selling in the closing stages of the trading session, after a sharp slump in key European indices prompted investors to unwind their position further. Rising interest rates to curb inflation menace and falling crude oil prices is creating fear amongst investors that the world could be heading towards a major economic slowdown as demand falters. Technically, the Nifty finally dismissed the key support of 15650 which it held since March. It was a decisive dismissal, that too on the day of the big event, thus inviting a pattern of further weakness in the medium term. With the Nifty closing below 15400, the current bearish sentiment may see the index slide further to 15100 or 15000 in the near term. On the other hand, the previous support of 15650-15730 levels has now become resistance to the market. The strategy should be to short trade if Nifty bounces to given levels and place a stop loss at 15800 or buy Nifty if it drops to 15100-15000 with a stop loss at 14950.”
Metal, banks, auto and IT stocks were the top sectoral losers with their BSE indices ending 921 pts, 862 pts and 550 points and 701 points lower, respectively.
Share Market update: Sensex tanks 1,045 pts, Nifty below 15,400; Tata Steel, TechM top losers
Prashanth Tapse, Vice President (Research), Mehta Equities said, “After witnessing a temporary relief that saw markets rebound in the morning session, Nifty’s gains evaporated as the benchmark fell hard and, most importantly, ended at its lowest point of the day. Actually, the outlook for sizzling core inflation is still troubling the big Nifty bulls. The fact that the Fed has stepped up to raise rates faster, the street suspects that the RBI may catch up with the hawkish Fed. After today’s sharp plunge, we suspect bulls will have to battle hard in the backdrop of a hawkish Fed and RBI, spiking oil prices, inflation concerns, growth fears, and persistent FIIs selling. Technically speaking, the immediate support for Nifty is seen at 15,000 mark. Below 15,000, expect the Nifty to quickly slip towards 14,251 mark.”
Foreign institutional investors (FIIs) remained net sellers in the capital market, as they sold shares worth Rs 3,531.15 crore on Wednesday, as per exchange data.
Global markets
Global markets turned negative with European indices slipping nearly 2 per cent each. While FTSE slipped 145 points or 2 per cent, DAX tanked 2.75 per cent or 372 points. CAC 40 too lost 132 points or 2.18 per cent to 5,898.
Elsewhere in Asia, markets in Shanghai and Hong Kong settled lower, while Tokyo and Seoul ended marginally higher.
Yesterday, the Dow Jones Industrial Average rose 303.7 points, or 1 per cent, to 30,668.53, the S&P 500 gained 54.51 points, or 1.46 per cent, to 3,789.99 and the Nasdaq Composite added 270.81 points, or 2.5 per cent, to 11,099.16.
Meanwhile, international oil benchmark Brent crude dipped 0.66 per cent to $117.68 per barrel.