Sensex sinks 1,300 pts from day’s high, Nifty gives up 24k amid volatility in global markets

Sensex sinked over 1,300 pts from the day’s high on Tuesday as sellers outweighed buyers amid highly volatile global markets. Sensex, which rose to a high of 79,852 in early deals hit a low of 78,496 in the afternoon session, falling 1,356 pts on an intra day basis. In the previous session, the 30-stock index closed at 78,759, down 2222.55 pts.

On similar lines, Nifty slipped 422 pts from the day’s high of 24,382 to hit an intraday low of 23,960.  In the previous session, Nifty crashed 662 pts to 24,055.

 At 2:52 pm, Sensex was down 203 points to 78,556 and Nifty fell 66 pts to 23,999. Later, Sensex closed 166 pts lower at 78,593 and Nifty ended 63 pts lower to 23,992.    

Market cap of BSE-listed firms stood at Rs 439.59 lakh crore on Tuesday against Rs 441.82 lakh crore in the previous session. 

VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services said, "There are many unknown factors like the total volume of the Yen carry trade. This can influence the market, going forward. Yesterday around 600 stocks in the mid and Smallcap segments were locked in the lower circuit. This is the risk in investing in the broader market. Quality largecaps were steady despite the correction. Domestic liquidity flows can facilitate a recovery in the markets. It appears that the US recession fears are a bit premature and overdone. Investors need not panic. Quality largecaps can be slowly accumulated."

Ajit Mishra – SVP, Research, Religare Broking said, "Markets traded volatile after Monday’s decline and settled marginally lower amid mixed signals. Initially, a recovery in global indices prompted a gap-up start, but pressure on heavyweights, particularly in the banking sector, erased the gains. Meanwhile, a mixed sectoral trend kept traders engaged, with realty, IT, and metal sectors edging higher while banking and auto sectors ended lower. The broader indices traded lackluster and closed slightly down. Nifty is attempting to defend the short-term moving average, the 50 DEMA, but the overall sentiment remains negative. Mixed global cues may continue to cause volatile swings. Amid this uncertainty, traders should limit their positions and adopt a hedged approach until stability returns."

 US markets 

Overnight, US markets tumbled for the third straight session on fears the US economy could be headed for a recession. Weak US jobs data released last week led to a crash in US markets on Friday. 

While NASDAQ Composite Index slipped 567 pts or 3.38% to 16,208, S&P 500 index closed 156 points lower at 5,190. Dow Jones Industrial Average plunged 1026 points to 38,710 on Monday.

Fresh jobs data in US indicated jobless claims stood at 249,000 above estimates of 236,000. 

Asian markets 

Asian markets, which crashed on Monday, mostly saw a relief rally today. Japan's Nikkei 3217 pts to 34,675 but Hang Seng slipped 51 pts to 16,647 today. Taiwan Weighted index was up 670 pts to 20,501. Kospi also rose 80 pts to 2522 on Tuesday. 

European markets 

UK’s FTSE was down 31 pts to 7,976 on Tuesday.  France's CAC slipped 38 pts to 7,110 and DAX fell 43 points to 17,296.