Mkts down for 5th session on global pessimism
Despite fall in oil prices and an optimistic view of the progressing Q2 season, investors remain cautious due to expectation that a higher interest rates
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Investor Sentiment On Edge
♦ BSE Sensex tanked 522.82 pts or 0.81% to 64,049.06
♦ During the day, Sensex dropped 659.72 pts or 1.02% to 63,912.16
♦ Nifty fell 159.60 pts or 0.83% to 19,122.15
♦ Infosys, Airtel, NTPC, Tata Motors, IndusInd Bank, Bajaj Finance, ICICI Bank, Tech M, Titan and Axis Bank were laggards
♦ Tata Steel, SBI, M&M, Maruti and Nestle among gainers
♦ FIIs bought equities worth Rs252.25 cr
Mumbai: Benchmark Sensex and Nifty plunged nearly one per cent on Wednesday due to heavy selling in financial and IT shares as the ongoing tensions in the Middle East unnerved investors. Falling for the fifth day running, the 30-share BSE Sensex tanked 522.82 points or 0.81 per cent to settle at 64,049.06 with 24 of its components ending in the red. The index plunged by 2,379 points in the five sessions. The Nifty declined by 159.60 points or 0.83 per cent to 19,122.15. In the five sessions, the index lost around 690 points.
“Investor sentiment is on edge as tensions in West Asia continue to drag the market. Despite a drop in oil prices and an optimistic view of the progressing Q2 results season, investors took a cautious approach due to the expectation that a higher interest rate scenario would continue slowing future growth. A positive strategy is evident on large-cap stocks, amid growing geopolitical worries and valuation concerns in mid and small-cap stocks, as overall earnings growth is being sustained,” said Vinod Nair, head (research) at Geojit Financial Services.
“The market was waiting for an opportunity for profit-booking - the recent hike in bond yields to 5 per cent, increased geopolitical tensions risking a flare-up in the Middle East as well and early in-line corporate results have all just provided the platform for much-awaited correction,” said Pawan Bharaddia, Co-founder, Equitree.
In the broader market, the BSE smallcap gauge declined 0.77 per cent and midcap index fell 0.52 per cent. Among the indices, teck dropped 1.39 per cent, telecommunication fell by 1.29 per cent, utilities (1.25 per cent), IT (1.13 per cent), power (1.09 per cent).
