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Weak global markets spark selloff on D-Street; Sensex tanks 554 points – Economic Times

NEW DELHI: After trading flat for most of the day, benchmark indices slumped on Tuesday after US Futures opened deep in the red. Weak global cues from elsewhere also dampened the market mood.

All sectors saw selling. Metals, realty and IT names were especially under pressure. Volatility also rose ahead of the press conference by the Finance Minister today.

The 30-share pack Sensex declined 554.05 points or 0.90 per cent to close at 60,754.86. Its broader peer NSE Nifty fell 195.05 points or 1.07 per cent to 18,113.05.

Investors were left poorer by Rs 3.71 lakh crore as the total market cap of BSE-listed firms, which reflects investor wealth, slipped to Rs 276.30 lakh crore.

“Surge in oil prices and FIIs turning net sellers also added volatility in the domestic market. Globally, markets witnessed selling pressure following a surge in US treasury yield amid rate hike worries while oil prices rose on supply tension owing to the drone attack on UAE,” Vinod Nair, Head of Research at Geojit Financial Services.

Market at a glance:

  • Inox Wind slips 2 per cent as co to sell shares worth Rs 400 cr during IGESL IPO
  • Newgen Software falls 2 per cent despite Q3 profit jumping up 35 per cent
  • Tatva Chintan Pharma shares tumbles 9 per cent post Dec quarter earnings
  • India VIX, a barometer of future volatility, spikes 6 per cent
  • Angel One gains around 2 per cent as cons net profit jumps 125 per cent

Among the bluechip names, Axis Bank was the top gainer, rising 1.78 per cent. ICICI Bank, HDFC Bank, Dr Reddy’s Labs, Nestle India and Kotak Mahindra Bank were other gainers.

Maruti Suzuki was the top loser in the Nifty pack, falling 4.07 per cent. Tata Consumer, UltraTech Cement, Eicher Motors, Grasim Industries, Tech Mahindra, HCL Tech and JSW Steel were other stocks that ended in the red.

Broader market indices ended lower, and underperformed their headline peers. Nifty Smallcap index fell 2.45 per cent and Nifty Midcap slipped 2.06 per cent. Nifty 500, the broadest index on NSE, ended down 1.32 per cent.

“Volatility usually remains high during the corrective phase and earnings season is further adding to the choppiness. It’s prudent to maintain a few shorts also. The focus should be on earnings and global markets for cues.”

— Ajit Mishra, Religare Broking

Prestige Estate Projects, Crompton Greaves, Adani Total Gas, Infibeam Avenues, Kalpataru Power and Lux Industries were top gainers from mid and smallcap indices, climbing in the range of 0-9 per cent.

Dilip Buildcon, HFCL, Rain Industries, Ramco Cements, Hindustan Copper and Bharat Heavy Electric were major losers from broader market space, falling in the range of 4-9 per cent.

All sectors on NSE ended in the red. Nifty Realty index plunged the most at 2.61 per cent. Nifty Auto and Nifty Metal indices also fell over 2 per cent. Nifty IT, Nifty PSU Bank and Nifty FMCG indices were other major losers.

Market breadth was in favour of losers as 1,145 stocks ended in the green, while 2,285 names settled with cuts. As many as 465 securities hit 52-week highs, mostly from the smallcap space. Meanwhile, 7 names hit 52-week lows, mostly from the microcap space. About 425 stocks hit upper circuit limits and 320 lower circuit limits.

European markets were trading lower. London-based FTSE fell 0.77 per cent while Paris and Frankfurt declined 1.10 per cent and 1.16 per cent, respectively. In Asia, China rose while rest of the markets ended in the red.