Indian benchmarks Sensex and Nifty closed over 1 per cent lower each on Thursday, in line with weak global markets following the US Federal Reserve’s interest rate hike and its hawkish stance.
Sensex tanked 878.88 points to end at 61,799.03. During the day, it crashed 962.3 points or 1.53 per cent to 61,715.61.
Nifty plummeted 245.40 points or 1.32 per cent to close at 18,414.90.
Tech Mahindra (3.98%), Titan (2.57%), Infosys (2.59%) , HDFC (2.07%) , ITC (1.87%), Tata Steel (1.86%) and HDFC Bank (1.81%) were the top Sensex losers.
NTPC (0.06%) and Sun Pharma (0.08%) were the only gainers on Sensex.
Market breadth was negative with 1,405 shares closing higher against 2152 stocks falling on BSE. 123 shares were unchanged.
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities said, “For traders now, 18350 -18300/61500-61300 would be the immediate support levels, on the flip side, 20 day SMA (Simple Moving Average) or 18535/62350 could act as a crucial resistance zone. We are of the view that, as long as the index is trading below 18535/62350 the chances of hitting 18300/61300 would turn bright. For the bulls, pullback rally possible if the index succeeds to trade above 18535/62350 above the same, it could move up to 18600-18630/62500-62700.”
IT, banking, capital goods and consumer durables shares were the top sectoral losers with their BSE indices falling 613 points, 592 points, 412 points and 557 points, respectively.
BSE metal index too slipped 381 points to 20,575 amid the market correction today.
The Nifty IT index too fell 626 points to 29,087.
Market cap of BSE-listed firms settled at Rs 288.47 lakh crore. BSE mid cap and small cap indices fell 277 points and 184 points, respectively.
Vinod Nair, Head of Research at Geojit Financial said, “The Fed has startled the market by maintaining its hawkish tone as investors were expecting a softer approach after the release of better-than-expected inflation numbers. IT stocks led to pessimism in the domestic market as recession fears grew in the global economies following the Fed’s comments. The market now awaits the BOE and ECB decisions, which are likely to follow a half-point hike.”
Benchmark indices closed higher on Wednesday, extending the previous session’s rally amid lower level of inflation on domestic front and better-than-expected inflation readings from the US.
Sensex climbed 144.61 points or 0.23 per cent to end at 62,677.91. During the day, it rose 301.81 points or 0.48 per cent to 62,835.11. Nifty advanced 52.30 points or 0.28 per cent to end at 18,660.30.
Elsewhere in Asia, equity markets in Seoul, Tokyo, Shanghai and Hong Kong ended lower. Equity exchanges in Europe were trading in the red in mid-session deals. The US markets had ended in the negative territory on Wednesday.