Sensex racks up 1,000 points amid weak global signals; banking and IT share the main losers

The Indian stock market resumed its correction after a single session break today. The market came under selling pressure, leading to heavy losses in IT, financials, banking and energy stocks amid widespread selling in global markets.

Sensex fell 1,016 points to 54,303 and Nifty was down 276 points to 16,201 in the latest trading session this week.

Kotak Bank was the biggest loser from Sensex, down around 4%, followed by Bajaj Finance, HDFC twins, Reliance Industries, Wipro, Infosys, Tech Mahindra, Tata Steel and TCS.

Asian Paints, UltraTech Cement, Dr Reddy’s, Titan and IndusInd Bank were among Sensex’s top gainers, rising 0.78%.

READ ALSO : Rs 3.20 lakh cr investor wealth lost as Sensex closes 1,000 bps lower

Nagaraj Shetti, Technical Research Analyst, HDFC Securities, said: “After showing a nice upside recovery from lows on Thursday, Nifty witnessed a steep U-turn lower on Friday and fell 276 After opening with a downside gap of 195 points (body gap, not a Western gap), the market showed continued selling pressure throughout the day Minor intraday upside rallies were liquidated and the Nifty closed near the lows A long negative candle formed on the daily chart and moved below the support at the 16200 levels. the market appears to have resumed bearish momentum on Friday.

Market capitalization of BSE-listed companies fell to Rs 251.81 lakh crore today from Rs 254.95 lakh crore market capitalization in the previous session, translating to a loss of Rs 3.2 lakh crore.

Market breadth was negative with 1,298 stocks ending higher than 2010 stocks down on BSE. 121 shares remained unchanged.

The BSE mid-cap and small-cap indices fell 141 points and 181 points, respectively, in trading today.
On a sector basis, banking and computer stocks were the big losers, losing 730 points and 629 points respectively.

The rupee fell 11 paise to close at a record high of 77.85 against the US dollar on Friday.

Commenting on the Rupee’s slide, Mohit Nigam, Head – PMS, Hem Securities said: “INR hit a record high of 77.85 against the US Dollar today. Some of the reasons for the weakening include persistent selling from FII in recent months, rising bond yields, rising oil prices and inflationary pressures for the next few quarters.We need to watch US consumer inflation data closely, if they remain at low levels high and bond yields continue to rise, we could see more FII selling which would have a negative impact on the INR, however, if the inflation data is better than expected and the bond yield stabilizes, we may see signs of USD INR reversal.”

Foreign institutional investors (FIIs) remained net sellers in the capital market as they sold shares worth Rs 1,512.64 crore on Thursday, according to exchange data.

Benchmarks broke a four-day losing streak on Thursday despite weakness in global indices. Sensex jumped 427.79 points to close at 55,320.28. During the day, the benchmark reached a high of 55,366.84 and a low of 54,507.41. Nifty advanced 121.85 points or 0.74% to end at 16,478.10.

Dr Reddy’s was Sensex’s top gainer, up 3%, followed by Reliance Industries, Bharti Airtel, Tech Mahindra, Sun Pharma and Kotak Mahindra Bank.

Global Markets

Following a massive sell-off in the US market, stock exchanges in Tokyo, Hong Kong and Seoul ended sharply lower, while Shanghai settled into the green. Equities in Europe witnessed intense selling pressure in mid-term trades. Meanwhile, the international crude oil benchmark Brent climbed 0.45% to $123.62 a barrel.