Mumbai, Apr 12 (PTI) BSE benchmark Sensex slumped over 388 points to close at 58,576.37 on Tuesday, tracking heavy losses in index-majors Tata Steel, Wipro and Reliance Industries following a broad-based selloff in global markets.
A sharp depreciation in the rupee and persistent selling by foreign investors also dented market sentiment, analysts said.
Investors remained cautious ahead of crucial macroeconomic data announcements — industrial production for February and inflation rate for March — post trading hours.
“Hyperinflation and risk of a policy rate hike are placing the global market on its toes and are impacting the performance of equities with a rise in yield.
“Inflation in India is also expected to be on the higher side in Q1FY23, it is expected to subside due to a reversal of commodity prices and improvement in supply. The domestic market is also cautious in anticipation of Q4 results,” Vinod Nair, Head Of Research at Geojit Financial Services, said.
Falling for the second straight session, the 30-share index declined 388.20 points or 0.66 per cent to settle at 58,576.37. During the day, the benchmark tanked 666 points or 1.12 per cent to 58,298.57.
Similarly, the Nifty went lower by 144.65 points or 0.82 per cent to finish at 17,530.30.
“Nifty closed lower for the second consecutive session on April 12 in line with other global markets. Nifty opened the gap down due to weak global cues and kept falling till it made an intraday low at 1345 Hrs. A small bounce followed and the Nifty closed 0.82 per cent or 144.7 points lower at 17,530.30,” Deepak Jasani, Head of Retail Research, HDFC Securities, said.
Tata Steel was the top loser in the Sensex pack, shedding 2.76 per cent, followed by Tech Mahindra, Wipro, Bharti Airtel, Reliance Industries, L&T and Bajaj Finserv.
On the other hand, Axis Bank, Kotak Bank, PowerGrid, Maruti and ICICI Bank were among the gainers, rising up to 1.67 per cent.
The market breadth was negative, with 21 of the 30 Sensex constituents closing in the red.
In the broader market, the BSE midcap gauge slipped 1.45 per cent, while the smallcap index plunged 1.47 per cent.
Barring Banking, all BSE sectoral indices were in the red. BSE metal declined the most by 3.50 per cent, followed by energy (2.78 per cent), realty (2.66 per cent), oil and gas (2.47 per cent) and basic materials (2.16 per cent).
Tata Consultancy Services (TCS) settled flat at Rs 3,691.45, lower by 0.13 per cent after declaring its earnings post trading hours on Monday.
The country’s largest software services firm opened the fourth-quarter earnings season with a stellar set of numbers, crossing the Rs 50,000-crore revenue mark for the first time and recording 7.4 per cent year-on-year growth in net profit to Rs 9,926 crore.
As many as 2,253 stocks declined, while 1,166 advanced and 97 remained unchanged.
“Market will continue to be choppy in the near-term, pulled up and down by positive and negative news. The near-term headwind continues to be the rising US bond yields which have crossed 2.8 per cent for the 10-year and outflows from equity.
“The tech-heavy NASDAQ has turned distinctly weak and this has led to some profit-booking in Indian IT stocks too. But IT is likely to do well as TCS results indicate robust deal wins and order flows,” according to VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
On Monday, the Sensex tanked 482.61 points or 0.81 per cent to settle at 58,964.57. The Nifty declined by 109.40 points or 0.62 per cent to finish at 17,674.95.
“Asian shares were mostly in negative territory ahead of US inflation data which could foreshadow even more aggressive interest rate hikes from the Federal Reserve. “Chinese stocks however bounced back in afternoon trading as foreign investors accelerated purchases and speculation mounted that policymakers will take measures aimed at reviving economic growth,” Jasani said.
In Asia, markets in Tokyo and Seoul ended lower, while Shanghai and Hong Kong settled higher.
European stock markets were also staring at a deep sell-off in early deals. The US stocks ended with significant losses in the overnight trade.
“European stocks traded lower on Tuesday, with investors cautious ahead of key central bank meetings, with inflation climbing sharply, while the ongoing Ukraine conflict looks likely to intensify,” according to Jasani.
The rupee fell 23 paise to close at 76.14 (provisional) against the US dollar on Tuesday.
International oil benchmark Brent crude jumped 3.20 per cent to USD 101.6 per barrel.
“Domestic equities ended lower, following sluggishness across global markets. Moreover, news on the Russia-Ukraine war, rise in bond yields and further supply disruptions due to increasing COVID infections in China, continue to perturb market sentiments,” Mitul Shah, Head Of Research at Reliance Securities, said.
Foreign institutional investors continued to offload shares worth Rs 1,145.24 crore on Monday, according to exchange data. PTI SUM SUM BAL BAL BAL
