Benchmark indices snapped four-day gaining streak today led by weak global cues. US markets crashed overnight due to higher than expected inflation, which signaled more rate hikes were in offing, posing a risk to the economy's growth. Sensex fell 224 points to close at 60,346 and Nifty declined 66 points to settle at 18,003. The market recovered from morning lows due to heavy buying in banking stocks. Sensex fell 1,154 points to 59,417 and Nifty slipped 299 points to 17,771 in early trade.
Infosys, TCS, Tech Mahindra, HCL Tech, and L&T were the top Sensex losers today, falling up to 4.53 per cent. IndusInd Bank, PowerGrid and NTPC were the top Sensex gainers, rising up to 4.48 per cent. Midcap and smallcap indices fell 26 points and 1 point, respectively.
IT, capital goods and consumer durables shares were the top sectoral losers with their BSE indices falling 976 points, 279 points and 243 points, respectively.
Deepak Jasani, Head of Retail Research, HDFC Securities said, "Nifty recovered very well from the morning lows but succumbed to afternoon selling. It faced resistance from the high of the previous day. Now 18,088-18,092 could be the resistance for the near term while 17,765 could be the support. Broader market is showing the first signs of distribution."
Banking stocks were the major sectoral gainers with their BSE index rising 600 pts to 47,371. Market breadth was negative with 1,685 stocks ending higher against 1,789 stocks falling on BSE. 137 shares were unchanged.
Vinod Nair, Head of Research at Geojit Financial Services said, "Although the opening hours of the domestic market mirrored the sharp sell-off in the global market, it steadily recovered as investors gained the confidence to bottom fish, thanks to the brighter prospects for the domestic economy. The expectation that the Fed would become less hawkish, which had spurred the most recent global rally, was dashed by worse than anticipated US inflation figures. Additionally, easing WPI inflation numbers added more optimism with banking stocks leading the recovery, while the IT sector's performance was bleak due to recession fears in western markets."
Market cap of BSE-listed firms stood at Rs 285.92 lakh crore today. Foreign institutional investors remained net sellers on Tuesday as they sold shares worth Rs 1,956.98 crore, as per exchange data.
Sensex closed above the 60,000 level for the second consecutive session on Tuesday amid positive global cues. Nifty too managed to close above the 18K mark for the first time since April 4 this year. On April 4, the index closed at 18,053 level. Sensex ended 456 pts higher at 60,571. Of 30 Sensex stocks, 24 closed in the green. After opening in the green, the index touched a day's high of 60,635 and a low of 60,381. The 50-stock Nifty climbed 133 points or 0.75 per cent to end at 18,070 with 34 of its constituents ending in the green.
Germany's DAX lost 0.2% to 13,165.86 and the CAC 40 in Paris gave up 0.3% to 6,2275. Britain's FTSE 10 shed 0.7% to 7,334.75. The futures for the Dow industrials and S&P 500 both were down about 0.3%.
US market tumbled overnight with Dow losing more than 1,250 points and the S&P 500 sinking 4.3 per cent. Reports of high inflation in the US worried traders that the Federal Reserve will continue raising interest rates, adding to risks for the economy. The S&P 500 crashed 4.3 per cent to 3,932.69. The Dow fell 3.9 per cent to 31,104.97 and the Nasdaq composite closed 5.2 per cent lower, at 11,633.57.
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