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Market Watch: Benchmarks succumbed to selling pressure again. What drove bears today

Welcome to ETMarkets Watch, the show about stocks, market trends and money-making ideas. I am Bhaskar Dutta and here are the top headlines at this hour.

-Sri Lanka enters default for first time ever
-India, fastest-growing major economy, says UN
-UN cuts India growth estimate to 6.4%
-Pakistan to cut massive fuel, power subsidies
-Adani forays into healthcare services

Let’s take a quick glance at what happened on Dalal Street today.

Domestic equities suffered a bloodbath on Thursday as a sharp selloff in global stocks spilled over into the domestic market amid deepening concerns of aggressive interest rate hikes by the Reserve Bank of India.

With foreign portfolio investors showing no signs of halting their unprecedented sales of equities, headline indices logged their worst intraday fall since March 2020 on Thursday.

The market’s woes have been exacerbated by an increasingly unfavourable picture on the macro-economic front, with India’s inflation currently at 8-year highs even as multiple agencies downgrade the country’s GDP growth forecasts.

Meanwhile, the rupee, which has witnessed a significant bout of volatility this week, settled at a record closing low on Thursday. The weakness in the rupee has stoked fears of even more FII sales while increasing the risk of imported inflation.

Domestic stocks eroded nearly Rs 6.36 lakh crore from investors’ kitty on Thursday. Data showed the BSE market capitalisation fell 6.3 lakh crore to Rs 249.40 lakh crore from Rs 255.7 lakh crore a day ago.

The 30-share pack Sensex nosedived 1,416.30 points or 2.61 per cent at 52,792.23. Its broader peer NSE Nifty shed 430.90 points or 2.65 per cent to post its worst day since February 24 and close near the 15,809.40 mark.

Broader markets feel in line, with the BSE Midcap and Smallcap indices losing 2.7 and 2.3 per cent, respectively. Fear gauge India VIX surged 10.14 per cent to end at 24.56.

27 of the 30 stocks on the BSE Sensex fell, with Wipro and HCL Tech declining 6 per cent. Tech Mahindra, Infosys, TCS and Tata Steel each fell 5 per cent, while IndusInd Bank fell 4 per cent. ITC gained 3 per cent.

12 stocks hit 52-week highs, while 63 touched 52-week lows.

We have Ajit Mishra from Religare Broking to share his views on the action and the road ahead:

Welcome to the show, sir:
1. After finally showing some strength earlier this week, markets have again succumbed to selling pressure. What drove the bears?
2. The minutes of the MPC meet suggest that rate hikes could be frontloaded. Which are the sectors you would avoid?

We also caught up with Nilesh Jain of Centrum Broking to decode the technical charts for you.
1. The Nifty50 closed well below the 16,000 level. What do the technical charts suggest about it?
2. Bank Nifty fell in line with the headline index today. What is your outlook on the sector?

Asian markets ended lower for the day. Major European markets were trading with cuts in the first few hours of trade. Meanwhile, US stock futures were down, signalling a weak start to US equities later in the day.

That’s all for now. Do check out ETMarkets.com for all the news, market analysis, investment strategies and dozens of stock recommendations. Enjoy your evening. Bye Bye!

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