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Benchmark indices closed lower by more than 2 per cent on Thursday amid heavy sell-off.
Market opened on a weak note, tracking weak global cues, as inflation concerns weighed on investor sentiments. Indices extended losses through the day amid broad-based selling.
The BSE Sensex closed at 52,792.23, down 1,416.30 points or 2.61 per cent. It recorded an intraday high of 53,356.04 and a low of 52,669.51. The Nifty 50 closed at 15,809.40, down 430.90 points or 2.65 per cent. It recorded an intraday high of 15,984.75 and a low of 15,775.20.
Over 2,400 stocks decline
The market breadth turned in favour of the decliners with 2,482 stocks declining on the BSE as against 845 that advanced while 120 remained unchanged. Furthermore, 14 stocks hit the upper circuit as compared to the two stocks that were locked in the lower circuit. Besides, 49 stocks touched a 52-week high and 87 touched a 52-week low.
The volatility index rose 10.14 per cent to 24.56, signalling caution among investors.
The broader market also faced increased pressure with the Nifty Mdicap 50 closing 2.94 per cent lower while Nifty Smallcap 50 was down 3.04 per cent. The S&P BSE Midcap was down 2.66 per cent while the S&P BSE Smallcap was down 2.29 per cent.
Naveen Kulkarni, Chief Investment Officer, Axis Securities, said, “Growth momentum in the global economy is slowing due to liquidity tightening by central banks. The Russia-Ukraine conflict is also not showing any signs of easing with newer categories of weapons introduced in the conflict, which will keep energy and food prices high.”
“Both these variables point to a stagflation kind of scenario globally, which can lead to a fall in discretionary spending. This is fuelling greater volatility in global equity markets, including in India. We expect markets to remain volatile in the near term but expect better conditions in the second half of the financial year once markets price in the impact of global slowdown and higher rates,” Kulkarni added.
Parth Nyati, Founder, Tradingo, said, “Global inflation has become the biggest spoilsport and has derailed 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.”
Only three stocks — ITC, Dr Reddy’s and Powergrid — closed in the green on the Nifty 50, while HCL Tech, Wipro, Infosys, TCS and Tech Mahindra were the top losers.
All in red
All sectoral indices closed lower, with IT and metals witnessing significant pressure.
Nifty IT was down nearly 6 per cent at closing while Nifty Metal was down over 4 per cent. Nifty PSU Bank, Nifty Private Bank, Nifty Auto and Nifty Realty were down nearly 3 per cent each. Nifty Bank, Nifty Financial Services, Nifty Pharma, Nifty Healthcare Index, Nifty Consumer Durables and Nifty Oil & Gas were each down over 2 per cent.
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