Of the 3,478 stocks, which traded on the BSE, as many as 3,161 or nearly 91 per cent stocks ended in the red on Thursday amid heavy selling pressure in the global equity market. Benchmark equity index BSE Sensex plummeted around 5 per cent on February 24 after the Ukraine crisis intensified with Russia’s invasion into Eastern Ukraine.
The 30-share Sensex tumbled 2,702 points to 54529.91. Likewise, the 50-share NSE Nifty index closed 815 points down at 16,247. Commenting on the bloodbath, Vinod Nair, head of research, Geojit Financial Services said, “It was a big surprise for the world market as it was not anticipating a war. It was expecting a diplomatic meet between Biden and Putin. Markets around the globe plunged deep in the red as the Ukraine crisis intensified with Russia’s invasion into Eastern Ukraine.”
Meanwhile, Brent crude oil price crossed $100 per barrel and elevated inflation risk.
Rajnath Yadav, research analyst, Choice Broking said, “Brent crude in three digits is a concern for an importer like India. We are among the top-5 importers of crude oil and currently imports more than 85 per cent of the requirement. We feel that international crude prices will remain at elevated levels (as compared to the levels seen in the last 5-6 years) and thus this will be a major concern for India.”
Traders also remain concerned as India Ratings revised downwards its GDP growth forecast for 2021-22 to 8.6 per cent from the consensus 9.2 per cent projected earlier.
All the 30 components in the Sensex pack ended in red. With a fall of 7.88 per cent, IndusInd Bank emerged as the top loser in the index. It was followed by Mahindra & Mahindra (down 6.34 per cent), Bajaj Finance (down 6.02 per cent), Axis Bank (down 5.99 per cent) and Tech Mahindra (down 5.75 per cent). Maruti Suzuki, Tata Steel, Bajaj Finserv, HDFC Bank, Wipro, UltraTech Cement, Asian Paints, State Bank of India and ICICI Bank also slipped over 5 per cent.
Vijay Chandok, MD and CEO, ICICI Securities said, “We continue to see this correction as an opportunity for the investors to add on the companies with sustainable growth visibility.”
Sectorwise, the BSE Realty index crashed 7.27 per cent. BSE Telecom, Auto, Bankex, Power and Oil & Gas also lost over 5 per cent. Other sectoral indices cracked between 3 per cent and 5 per cent.
While sharing his advice with the market participants, Vineet Bagri, managing partner, TrustPlutus Wealth said, “We must remind ourselves that this decline is not due to any India centric issue. Thus we would not be too concerned regarding this ongoing correction and would view it as a healthy break from the rally we have witnessed over the past two years.”