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Benchmark stock market indices were trading in deep red, near the day’s lows during the afternoon on Thursday amid across the board selling.
Tracking weak global cues, especially the US market, the market opened on a weak note. Indices extended losses in the first half amid broad-based selling.
At 1 pm, the BSE Sensex was trading at 52,867.71, down 1340.82 points or 2.47 per cent, near the day’s low of 52,857.7. It recorded an intraday high of 53,356.046. The Nifty 50 was trading at 15,837.00, down 403.30 points or 2.48 per cent, near the day’s low of 15,834.55. It recorded an intraday high of 15,984.75.
The volatility index rose 8.18 per cent to 24.12, signalling caution among investors.
The broader market also faced pressure with the Nifty Midcap 50 down 2.90 per cent. The Nifty Smallcap 50 was down 2.68 per cent. The S&P BSE Midcap was down 2.50 per cent, while the S&P BSE Smallcap was down 2.20 per cent.
Parth Nyati, Founder, Tradingo said, “Global inflation has become the biggest spoilsport and has derailed the economic growth recovery globally. The post-pandemic inflation which was once believed to be transient has now become an entrenched one. Inflation rates are at a 40-year high in countries like the UK, and the US.”
“This has created a huge sell-off and meltdown in the majority of the stock markets globally. India’s WPI inflation jumped to a 17-year high, this will force RBI to further hike interest rates. All these factors have collectively led to a 2 per cent fall in Nifty and Sensex,” said Nyati.
Only three stocks — ITC, Dr Reddy’s and Hero Motocorp were trading in the green on the Nifty 50, while Wipro, Infosys, Tech Mahindra, HCL Tech and TCS were the top losers.
Sectoral indices
All sectoral indices were in the red with IT and metals witnessing significant pressure.
Nifty IT was down over 5 per cent, while Nifty Metal was down over 4 per cent. Nifty PSU Bank and Nifty Private Bank were down nearly 3 per cent each. Nifty Bank, Nifty Financial Services, Nifty Auto, Nifty Realty and Nifty Oil & Gas were each down over 2 per cent.
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