Bombay, February 3
The Sensex and Nifty gave way under heavy selling pressure on Thursday as investors pocketed gains in IT, financials and banking stocks after three sessions of robust gains.
Jitters in European markets ahead of central bank meetings, coupled with lackluster macro data at home, also undermined risk appetite, traders said.
The 30-stock BSE Sensex plunged 770.31 points or 1.29% to end at 58,788.02. Similarly, the broader NSE Nifty lost 219.80 points or 1.24% to close at 17,560.20.
HDFC lagged the most among Sensex constituents, falling 3.23%, followed by Infosys, L&T, Bajaj Finserv, Bajaj Finance, Tech Mahindra and Kotak Bank.
Only five counters closed in the green: ITC, Maruti, Titan, SBI and Asian Paints, up 1.14%.
On the macro front, service sector activity in India slowed further in January as new business grew at a noticeably slower pace amid the escalating pandemic, reintroduction of restrictions and restrictions. inflationary pressures, according to a monthly survey.
India’s seasonally adjusted index of service business activity fell to 51.5 in January from 55.5 in December, indicating the slowest rate of expansion in the current six-year growth streak. month.
“The domestic market extended losses following large-scale selling as global signals turned in favor of the bears. All major sectors succumbed to the sell off while auto stocks showed some resilience thanks to sequential growth in January auto sales figures.
“U.S. futures were under pressure on weak earnings numbers reported by Meta (Facebook) while European markets worried about monetary policy tightening ahead of the central bank’s policy announcement,” said Vinod Nair, head of research at Geojit Financial Services.
Ajit Mishra, Vice President – Research, Religare Broking, said: “Markets have seen volatile swings despite the positive bias and we expect this trend to continue…(middle) choppy global markets and of the current earnings season.” With the exception of autos and consumer durables, all BSE sector indices closed with losses, led by IT, teak, real estate, financials, power and l ‘energy.
BSE’s mid-cap and small-cap gauges lost as much as 0.90%.
Global markets skidded ahead of policy meetings by the European Central Bank (ECB) and Bank of England (BoE) amid fears of rate hikes to control inflation.
In other Asian markets, Tokyo closed in the red, while Seoul was positive.
Several Asian markets, including China and Hong Kong, were closed for the Lunar New Year holiday.
European stock markets were mostly trading in the negative zone during the afternoon session.
The international oil benchmark, Brent, fell 0.65% to $88.89 a barrel.
The rupee fell 5 paise to close at 74.88 against the US dollar, weighed by the strength of the US currency overseas.
Foreign institutional investors (FIIs) remained net sellers in the capital market, offloading shares worth Rs 183.60 crore on Wednesday, according to stock market data.
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