NEW DELHI: Dragged by heavyweights such as HDFC twins, Tata Consultancy Services (TCS) and Reliance Industries (RIL) amid a weak trend in global markets, benchmark indexes slipped nearly 1% on Thursday. This is the third straight day when the indexes are closing in red after rallying over 2% on Monday.
The BSE Sensex fell 575.46 points to settle at 59,034.95 while the Nifty 50 plunged 168.10 points to shut at 17,639.55. Like Wednesday, the two indices on Thursday had opened with a cut and slipped further as the session progressed.
According to market experts, the fall is attributed to the US Fed’s hawkish stance and profit booking ahead of the RBI policy meet. The Russia-Ukraine conflict which has increased volatility in oil prices continues to impact markets.
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities, said, “Negative sentiment continued for the third straight session as the US Fed’s hawkish stance has raised concerns of steeper interest rate hikes going ahead while investors also trimmed their positions ahead of RBI policy, although most of the experts believe the MPC may maintain status quo on policy rates.”
RIL on Thursday fell 1.82% to close at Rs 2,571.75 on the BSE. HDFC fell nearly 3% to close at `2462.65 while HDFC Bank fell 2.19% to Rs 1516.90. TCS, Wipro, and Titan fell up to 3%. Among other buzzing stocks, Zee Entertainment Enterprises declined over 2% on Thursday to close Rs 284.85, a day after Invesco funds decided to divest up to 7.8% stake in the company. IDFC shares tanked nearly 7% to close at Rs 63.85 after Bandhan consortium announced acquiring its AMC business for Rs 4,500 crore. Except for pharma, all other sectoral indices ended lower on Thursday.
Vinod Nair, Head of Research, Geojit Financial Services, said if announcements in RBI policy are in-line with market expectations, the market will trade positively considering corrections during the week and falling crude prices or else challenges will prevail.
Buzzing stocks
Zee Entertainment Enterprises declined over 2%, a day after Invesco funds decided to divest its stake in the company. IDFC shares tanked 7% after Bandhan consortium announced acquiring its AMC business