Indian markets opened negative following mixed Asian market peers as investors look ahead to US Fed meeting and rising geopolitical uncertainty. During the afternoon session, they further sold off as indices fell well below psychologically crucial levels.
Mumbai:
Equity benchmark Sensex on Monday crashed about 1,546 points to sink below the 58,000-level due to across-the-board selloff tracking sluggish global markets.
Besides, persistent foreign capital outflows continued to affect the market sentiment, traders said.
Benchmark indices started the session on a weaker note and the selling intensified during afternoon trade, with almost all sectoral indices ending in the red.
The 30-share BSE Sensex ended 1,545.67 points or 2.62 per cent lower at 57,491.51. Similarly, the NSE Nifty slumped 468.05 points or 2.66 per cent to 17,149.10.
All Sensex components ended in the red.
Indian markets opened negative following mixed Asian market peers as investors look ahead to US Fed meeting and rising geopolitical uncertainty. During the afternoon session, they further sold off as indices fell well below psychologically crucial levels.
Bajaj Finance was the top loser, shedding around 6 per cent, followed by Tata Steel, Bajaj Finance, Wipro, Tech Mahindra, Titan, Reliance Industries and HCL Tech.
Shares of other new-age companies also tumbled on the bourses with Paytm down 4.4 per cent (at Rs 917), Zomato 19.6 per cent (Rs 91.4), and Policybazaar 10 per cent (Rs 776.6) as growth in profitability reduced and valuations remained expensive.
“The broader indices too capitulated to selling pressure and were trading with heavy losses of around 3 per cent each. Sentiments were so fragile that traders paid no heed toward RBI’s data showing that the country’s foreign exchange reserves grew by USD 2.229 billion to USD 634.965 billion in the week ended January 14, Narendra Solanki, Head- Equity Research (Fundamental), Anand Rathi Shares & Stock Brokers, said.
Elsewhere in Asia, bourses in Hong Kong and Seoul ended with losses, while Tokyo and Shanghai were positive.
In Europe, the pan-European Stoxx 600 fell 1.4 per cent by mid-morning while Germany’s DAX and France’s CAC40, also, dropped over 1 per cent each. However, Futures linked to the US were trading up to 0.3 per cent higher each as of 3:30 PM.
Shares across the world fell on Monday as the prospect of a Russian attack on Ukraine quashed demand for riskier assets, bolstering the dollar, buoying oil and bruising bitcoin.
The U.S. State Department said on Sunday it was ordering diplomats’ family members to leave Ukraine in one of the clearest signs yet that American officials are bracing for an aggressive Russian move in the region.
Meanwhile, international oil benchmark Brent crude rose 0.32 per cent to USD 88.17 per barrel.
Foreign institutional investors (FIIs) remained net sellers in the capital market, as they sold shares worth Rs 3,148.58 crore on Friday, according to stock exchange data.