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Benchmark indices were trading over 2 per cent lower during the afternoon on Monday.
Market opened on a weak note, tracking negative global cues as soaring oil prices following the risk of a ban on Russian crude oil imports from the Western nations triggered a sell-off. Indices extended losses in the first half amid broad-based selling with financials, auto and FMCG being worst hit.
At 1 pm, the BSE Sensex was trading at 53,086.17, down 1247.64 points or 2.30 per cent. It recorded an intraday high of 53,203.87 and a low of 52,542.64. The Nifty 50 was trading at 15,903.90, down 341.45 points or 2.1 per cent. It recorded an intraday high of 15,944.60 and a low of 15,741.55
.ONGC, Hindalco, Bharti Airtel, UPL and Coal India were the top gainers on the Nifty 50 while Axis Bank, Maruti, IndusInd Bank, M&M and Tata Motors were the top laggards.
Commodities in turmoil
According to Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, “The extraordinary uncertainty triggered by the war has pushed commodity markets into turmoil. This can impact global growth and aggravate inflationary pressures. In India, growth will be lower and inflation higher than projected for FY 23.”
Brent crude oil futures rose to a 14-year high of $139 a barrel in the early trade. Further, the Indian rupee hit a record low against the US dollar.
“Market is slipping into bearish territory. Investors have to be cautious. There is relative safety in energy due to high energy prices, metals due to high global prices and export segments due to resilient demand and rupee depreciation,” Dr Vijayakumar added.
Metals shine
On the sectoral front, all indices except Nifty Metal and Nifty IT were in the red with financials, realty, auto and FMCG recording higher losses.
Nifty Metal was up over 1 per cent.
Nifty Realty was down nearly 5 per cent. Nifty Bank, Nifty PSU Bank, Nifty Private Bank and Nifty Auto were down over 4 per cent each. Nifty Financial Services was trading nearly 4 per cent lower. Nifty FMCG was down over 2 per cent while Nifty Consumer Durables was down nearly 2 per cent.
Broader market under pressure
Broader indices were also trading in the red.
Nifty Midcap 50 was down 2.18 per cent while Nifty Smallcap 50 was down 1.57 per cent. The S&P BSE Midcap was down 2.02 per cent while the S&P BSE Smallcap was down 1.85 per cent.
The volatility index softened 4.20 perc cent to 29.13.
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