Sensex dives 575 pts; HDFC twins, computer shares lag

HIGHLIGHTS

  1. On the Sensexchart, Titan was the biggest loser by percentage, down 3.24%, Wipro, TCS and Reliance.
  2. Axis Bank, ICICI Bank, HUL, Dr Reddy’s and Mahindra and Mahindra were among the top winners.
  3. Broader indexes also fell, but less than the benchmark. The BSE Largecap index fell by 0.91%, the Smallcap index by 0.75% and the Midcap index by 0.42%.

Mumbai: Falling for the third session in a row, the ESB Sensex gauge fell more than 575 points to close just above the 59,000 level on Thursday as continued selling in the HDFC duo dragged down the index amid caution among participants due to hawkish comments from the US Fed.

Starting off on a lukewarm note, the Sensex dipped below 59,000 in intraday trading but managed to end at 59,035 – suffering a loss of 575.46 points or 0.97%.

Similarly, the NSE Nifty Barometer fell 168.10 points or 0.94% to settle for the day at 17,639.55.

It was the third straight session of losses for both indices.

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Trade Setup for Indian Stock Markets for April 7, 2022

Trade Setup for Indian Stock Markets for April 7, 2022

HDFC and HDFC Bank stocks continued to witness strong selling for the third consecutive session. HDFC ended down 2.91% and HDFC Bank was down 2.19% on Thursday. These two scrips had jumped about 10% on Monday after the announcement of the merger of these two entities.

On the Sensex chart, Titan was the biggest loser by percentage, dropping 3.24%, with other laggards being Wipro, TCS and Reliance.

Among Sensex constituents, 18 stocks closed with losses.

Axis Bank, ICICI Bank, HUL, Dr Reddy’s and Mahindra and Mahindra were among the top winners.

Broader indexes also fell, but less than the benchmark. The BSE Largecap index fell by 0.91%, the Smallcap index by 0.75% and the Midcap index by 0.42%.

From a sector perspective, Oil & Gas and BSE Energy were the biggest losers, falling 2.59% and 2.28% respectively.

Meanwhile, oil prices rose slightly on Thursday. Brent crude rose $1.85, or 1.82%, to $102.89 a barrel.

Rising crude oil prices remained a major concern for India, the world’s third-largest oil importer and consumer, as a rise in crude prices tends to increase the country’s trade and current account deficit while hurting the rupee.

Investors are now awaiting the outcome of the Reserve Bank of India’s (RBI) three-day monetary policy meeting, scheduled for Friday morning, amid growing concerns over soaring inflation.

Asian stocks fell on Thursday, in line with a global selloff, as markets spooked by hawkish comments from the Fed.

MSCI’s broadest index of Asia-Pacific stocks outside Japan fell 1.17% to its lowest level in a week, while Japan’s Nikkei fell 1.9%.

European and US stock futures also fell. EUROSTOXX 50 futures fell 0.2%, S&P 500 futures fell 0.37% and Nasdaq futures fell 0.35%.

Minutes from the March 15-16 Fed meeting, released on Wednesday, showed growing concern among policymakers that inflation could spread across the economy.

US Federal Reserve Governor Lael Brainard said on Tuesday she expected rapid reductions in the central bank’s balance sheet. Overnight, all three major U.S. benchmarks fell, with the Nasdaq Composite the hardest hit, losing 2.22%.

Investors also had in mind growing economic tensions in China, which is grappling with fresh outbreaks of COVID-19.

Shanghai, currently under a citywide lockdown, reported nearly 20,000 new cases on April 6 – the vast majority asymptomatic – the local government said on Thursday.

Nomura estimated on Tuesday that a total of 23 Chinese cities have implemented full or partial lockdowns, which are collectively home to around 193 million people and contribute 22% of the country’s GDP.

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