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Sensex crashes over 1000 pts amid weak global cues; IT stocks drag, ITC shines 

Sensex crashes over 1000 pts amid weak global cues; IT stocks drag, ITC shines 

Tech Mahindra, Bajaj Finserv, Infosys, Wipro, Tata Steel, HCL Technologies, Bajaj Finance and State Bank of India were the major laggards in early trade 

Sensex crashes over 1000 pts amid weak global cues; IT stocks drag, ITC shines  Sensex crashes over 1000 pts amid weak global cues; IT stocks drag, ITC shines 

It turned out to be a terrible Thursday for the investors on Dalal Street as the benchmark fell sharply amid an extremely weak trend in the global markets. Experts say that persistent foreign fund outflows and a spurt in crude oil prices also dampened sentiment. 

The 30-share BSE benchmark was trading 1,154.78 points lower at 53,053.75. The broader NSE Nifty tumbled 335.65 points to 15,904.65. 

From the Sensex firms, Tech Mahindra, Bajaj Finserv, Infosys, Wipro, Tata Steel, HCL Technologies, Bajaj Finance and State Bank of India were the major laggards in early trade. 

ITC emerged as the only gainer from the 30-share pack. The company posted a year-on-year consolidated net profit of Rs 4,196 crore, up 11.7 per cent in the quarter ended 31 March, 2022. The company had posted a net profit of Rs 3,755.47 crore in the year-ago period. 

Rahul Sharma, Research Head, Equity 99 said, "ITC has beaten all the market estimates and reported growth in all the sector. The growth can be seen in all the businesses from cigarettes to FMCG, Hotels to Paperboards and agri-business." 

"The sales growth, revenue, EBIDTA, all numbers are above expectations. The results of strategy reset made by chairman Sanjiv Puri is now visible across verticals, as all the verticals have performed above expectations. The stock has been performing well even in the bear market and such results will take it to new high.  Bonus of Rs 6.25 per share will add more value to the stock price too," he added. 

"Deteriorating macro sentiments such as soaring inflation, recession fears, and the prospect of the Federal Reserve getting even more hawkish will continue to keep benchmarks on the edge. Another main reason for the pessimism can be attributed to relentless selling from the FII camp," said Prashanth Tapse, Vice President (Research), Mehta Equities Ltd. 

"On the technical front, the key resistance level for Nifty50 is 16,350 followed by 16400 and on the downside 15,900 and 15,750 will act as strong support. They key resistance level for bank nifty is 34,500 followed by 34,800 and on the downside 33,500 and 33,100 will act as strong support," said Mohit Nigam, Head - PMS, Hem Securities. 

"U.S. markets saw the worst sell-off since June 2020 as inflation fear looms," he noted. 

On Wednesday, the benchmark indices pared all early gains in highly choppy trade. The 30-share BSE benchmark settled 109.94 points or 0.20 per cent lower at 54,208.53 and the broader NSE Nifty dipped 19 points or 0.12 per cent to finish at 16,240.30.