Sensex, Nifty plunge nearly 1 pc on weak global cues; RIL, Infosys weigh

In Asian markets, Shanghai ended in the green while Tokyo and Hong Kong settled lower. Trading was closed in South Korea for a holiday.

Mumbai: Equity benchmark indices Sensex and Nifty fell by nearly 1 per cent on Thursday due to unabated foreign capital outflows amid a largely negative trend in global markets.

Besides, heavy selling pressure in index major Reliance Industries, Infosys and ITC also dented market sentiments, traders said.

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The 30-share BSE Sensex fell 610.37 points or 0.92 per cent to settle at 65,508.32. During the day, it plunged 695.3 points or 1.05 per cent to 65,423.39.

The Nifty declined 192.90 points or 0.98 per cent to end at 19,523.55.

“The selling was broad-based, as investors are on alert given the rise of oil prices. If crude continues to stay above the USD 90 level, it will be a threat to inflation and boil the operational margins. Currently, the combination of higher interest rates and US bond yields are influencing FIIs to stay in the selling mode,” said Vinod Nair, Head of Research at Geojit Financial Services.

Tech Mahindra was the biggest loser in the Sensex pack, slipping 4.59 per cent, followed by Asian Paints, Wipro, Kotak Mahindra Bank, Bajaj Finserv, Infosys, ITC, Mahindra & Mahindra, Hindustan Unilever, IndusInd Bank, Reliance Industries and JSW Steel.

In contrast, Larsen & Toubro, Bharti Airtel, Power Grid and Axis Bank were among the gainers.

In the broader market, the BSE midcap gauge declined 1.19 per cent and smallcap index fell 0.34 per cent.

“The prevailing weakness in heavyweights across sectors combined with feeble global cues is weighing on the sentiment,” Ajit Mishra, SVP – Technical Research, Religare Broking Ltd, said.

Among the indices, IT declined 1.84 per cent, FMCG fell 1.74 per cent, teck (1.49 per cent), consumer durables (1.29 per cent), auto (1.24 per cent), commodities (1.21 per cent), consumer discretionary (1.15 per cent), metal (1.05 per cent), realty (0.98 per cent) and services (0.89 per cent).

Telecommunication and capital goods were the gainers.

“World stocks were on track for their longest losing streak in two years on Thursday as the sight of oil prices heading for USD 100 a barrel compounded concerns about persistently high global interest rates while persistent fears of higher US interest rates and concerns over China’s beleaguered property market also dented sentiments,” said Deepak Jasani, Head of Retail Research, HDFC Securities.

In Asian markets, Shanghai ended in the green while Tokyo and Hong Kong settled lower. Trading was closed in South Korea for a holiday.

European markets were trading in the negative territory. The US markets ended on a mixed note on Wednesday.

Global oil benchmark Brent crude dipped 0.38 per cent to USD 96.18 a barrel.

Foreign Institutional Investors (FIIs) offloaded equities worth Rs 354.35 crore on Wednesday, according to exchange data.

“The selling was broad-based, as investors are on alert given the rise of oil prices. If crude continues to stay above the USD 90 level, it will be a threat to inflation and boil the operational margins. Currently, the combination of higher interest rates and US bond yields are influencing FIIs to stay in the selling mode,” said Vinod Nair, Head of Research at Geojit Financial Services.

The BSE benchmark had climbed 173.22 points or 0.26 per cent to settle at 66,118.69 on Wednesday. The Nifty gained 51.75 points or 0.26 per cent to end at 19,716.45.