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Sensex, Nifty dance to global tunes to slip below key psychological levels – Economic Times

NEW DELHI: Selling in domestic stocks intensified, with the BSE barometer Sensex slipping below the 59,000 mark and NSE benchmark Nifty50 testing its crucial support of 17,600 in Friday’s trade, thanks to an overnight selloff in US stocks.

Asian markets were down up to 2.5 per cent in early morning. There was no escaping for domestic stocks, especially given the December quarter earnings have failed to spring positive surprises so far.

At 11 am, the BSE Sensex was trading 579 points, or 0.97 per cent, lower at 58,885. The NSE Nifty was trading 187.60 points, or 1.06 per cent, lower at 17,569. Both the indices have been falling for four sessions now, with stock investors losing about Rs 9 lakh crore in wealth.

Fears of the US Fed responding to rising inflation in the form of four rate hikes in 2022 and geopolitical tensions have spurred demand for the safe haven dollar, resulting in outflows from emerging markets such as India.

Data showed foreign portfolio investors have sold equities worth Rs 4,197 crore so far this month. The stress was captured in fear gauge India VIX, which surged 8.3 per cent to 19.28, as market participants anticipate high volatility over the next 30 days.

“FPIs who had become buyers in early January have again turned sellers with a massive sell figure of Rs 4,680 crore for Thursday. This is a major headwind for the market in the short run. 2022 has begun with heightened volatility and this is likely to continue. Since valuations continue to be high and FPIs are likely to sell on rallies, retail investors should not rush in to buy aggressively,” said V K Vijayakumar of Geojit Financial Services.

Bajaj Finserv tanked 3.26 per cent to Rs 16,697. Tech Mahindra and Dr Reddy’s Laboratories dropped 3 per cent each. Kotak Mahindra Bank, Titan Company, IndusInd Bank and Sun Pharma declined 1.5-2 per cent. Three Sensex constituents Power Grid, Hindustan Unilever and NTPC bucked the weak trend, rising up to 1 per cent.

Hindustan Unilever gained as the FMCG major reported an 18.68 per cent increase in consolidated net profit to Rs 2,300 crore for the December quarter.

Biocon fell 1.24 per cent to Rs 359.40 as the biotechnology major’s 17.68 per cent jump in consolidated net profit for December quarter failed to lift investor sentiment. All eyes were on index heavyweight Reliance Industries’ quarterly earnings slated for later in the day. JSW Steel, Vodafone Idea, HDFC Life Insurance Company, Hindustan Zinc, SBI Life Insurance Company, Gland Pharma, IDBI Bank and Bandhan Bank were some of the other major earnings scheduled for the day.