Financials, IT, and Capital Goods Stocks Drag Down Sensex and Nifty by Over 1% in Opening Trade Amid Weak Global Trends
The benchmark indices Sensex and Nifty witnessed a decline of more than 1% in opening trade on Friday due to heavy selling in financials, IT, and capital goods stocks amid weak global trends. The BSE Sensex fell by 730.17 points or 1.22% to 59,076.11 as 25 of its constituents traded in the red, while the broader Nifty of the National Stock Exchange tanked by 201.05 points or 1.14% to 17,388.55. The sell-off was triggered by weak Asian markets and overnight losses in the US market, resulting in heavy selling in financials, banking, IT, and capital goods shares. As a result, 45 of Nifty shares traded in the red with Adani Enterprises, HDFC twins, and IndusInd Bank emerging as the biggest losers.
According to V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, “The sell-off in US markets was triggered by a crash of 60% in SVB Financials – a bank that mainly funds startups. This impacted sentiments, and banking stocks took a beating on concerns that rising interest rates might trigger loan repayment defaults.” Among Sensex shares, HDFC fell the most by 2.53%, while IndusInd Bank, HDFC Bank, L&T, ICICI Bank, Reliance Industries, Axis Bank, Infosys, TCS, and Ultratech Cement were among major losers. However, Tata Motors bucked the trend, gaining 0.75%, while Bharti Airtel and Maruti also advanced.
In Asia, markets in Hong Kong, Shanghai, Tokyo, and Seoul declined following losses in US shares. Hong Kong’s Hang Seng dropped by 2.45%, South Korea’s Kospi by 1.21%, Shanghai by 1.15%, and Japan’s Nikkei by 1.36%. In the US, the S&P 500 tumbled 1.8%, the Dow Jones Industrial Average shed 1.7%, and the Nasdaq composite fell 2.1% as investors remain anxious about the prospect of more aggressive action by the Federal Reserve to fight inflation with higher interest rates.
The 30-share BSE Sensex ended 541.81 points or 0.90% lower at 59,806.28, while the broader NSE Nifty declined 164.80 points or 0.93% to 17,589.60. According to exchange data, Foreign Institutional Investors (FIIs) emerged as net sellers in the capital market on Thursday as they sold shares worth Rs 561.78 crore.
