Sensex and Nifty fall nearly 1% on profit booking in IT and financial stocks

MUMBAI: Benchmark sensex and Nifty stock indices fell nearly 1% on Wednesday on profit taking in banking, financial and IT stocks after a recent rally.
The 30-stock BSE sensex plunged 537.22 points or 0.94% to end at 56,819.39 as 24 of its shares declined. During the day, it lost 772.57 points or 1.34% to hit a low of 56,584.04.
The broader NSE Nifty fell 162.40 points or 0.94% to 17,038.40 with 39 of its constituents ending in the red.
Bajaj Finance was the biggest loser among sensex shares, falling 7.24%. Bajaj Finserve fell by 3.88%, ICICI Bank by 2.21% and SBI by 1.78%.
IT major Infosys fell 1.68% and Wipro 1.91%. Titan fell 2.19%, Dr Reddy’s 1.94%, UltraTech Cement 1.63%, M&M 1.46% and Maruti 1.44%.
By contrast, Tata Steel rebounded 1% while Asian Paints, HCL Technologies, TCS, Kotak Mahindra Bank, Reliance Industries and HDFC Bank also advanced.
“The market continued to experience high volatility following a strong sell-off in global markets driven by a high energy crisis and a weak Chinese economic outlook underpinned by prospects for US rate hikes. “said Vinod Nair, head of research at Geojit Financial Services.
“Investors are pricing in the possibility of a global slowdown due to central bank monetary tightening, the Chinese lockdown and the Russia-Ukraine war. This has led to an outflow of funds from equity markets into safe havens,” he added. Nair.
In the broader market, the BSE mid-cap index fell 0.88% and the small-cap index fell 0.61%.
Among the BSE sector indices, electricity fell the most by 1.86%, followed by utilities (1.81%), telecommunications (1.72%), finance (1.40% ) and oil and gas (1.24%). The metal was the only winner with a marginal gain of 0.02%.
As many as 2,202 stocks declined, while 1,161 rose and 120 remained unchanged.
Ajit Mishra, Vice President – Research, Religare Broking Ltd, said stock markets fell sharply in continuation of the current consolidation phase.
“Global headwinds like the Russia-Ukraine crisis, China lockdown, inflation worries and now earnings are causing erratic swings in markets around the world, including India,” Mishra said. .
Meanwhile, LIC has set the price range at Rs 902-949 per share for its initial public offering (IPO) of Rs 21,000 crore, which will open for subscription on May 4.
“This (LIC’s IPO) is a good size given the capital market environment and will not crowd out capital supply given the current market environment,” Pandey said.
Shivam Bajaj, Founder and CEO of Avener Capital, said the review of LIC’s IPO valuation in a volatile environment demonstrates the government’s will to complete the IPO.
“The revised IPO valuation can potentially open up a favorable opportunity for investors towards wealth creation,” Bajaj said.
Asian markets were mixed, with Tokyo and Seoul down more than 1%, while Hong Kong and Shanghai ended higher. European markets were trading in the green in the afternoon session.
Shares in the United States had ended significantly lower on Tuesday.
The sensex had jumped 776.72 points or 1.37% to end at 57,356.61 on Tuesday. The Nifty rallied 246.85 points or 1.46% to 17,200.80.
Meanwhile, international crude oil benchmark Brent gained 0.89% to $105.81 a barrel. Gas prices in Europe soared 24% after Russia announced it would cut off supplies to Poland and Bulgaria.
Foreign institutional investors continued their selling frenzy, unloading shares worth Rs 1,174.05 crore on Tuesday, according to stock market data.