The indices return to the red following the realization of profits in banking, financial and IT stocks

Frontline stock indices Sensex and Nifty50 fell nearly 1% on Wednesday on profits 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 fell. During the day, it fell 772.57 points or 1.34% to hit a low of 56,584.04.

The broader NSE Nifty50 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 monetary tightening by central banks, the Chinese lockdown and the Russian-Ukrainian war. This has led to an outflow of funds from equity markets into safe havens,” 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 fell, 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.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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