Major benchmark indices on Monday had a gap-down opening amid global signals of the week. At 9:17 AM IST, the Sensex fell 1,129.62 points or 1.94 percent at 57209.31 and the Nifty fell 299.20 points or 1.71 percent at 17176.50. About 950 shares have moved forward, 1,611 shares have fallen and 142 shares have remained unchanged. Infosys and HDFC Bank fell 6 percent and 2.4 percent, respectively, due to disappointing fourth-quarter results.
Tech M, HDFC, Wipro, HCL Tech, TCS, Axis Bank, Bajaj finserv, Kotak Bank and Axis Bank were the other big laggards on the Sensex, while Twere were the only players in green.
On the other hand, Tata Steel, NTPC, ITC, PowerGrid, Nestle, ONGC, Cipla, M&M and Bajaj Auto were the winners of the Sensex and Nifty.
Broader markets also opened in the red. The BSE MidCap and SmallCap indices fell to 1.4 percent. Sector-wise, the Nifty IT index led to losses, falling more than 3 percent. Nifty Bank, Financials and Realty were the other notable losers. On the other hand, the pockets of Nifty FMCH, Auto and Pharma were largely flat.
Among other stocks, Indiabulls Real Estate fell more than 4 percent. The company has raised Rs 8.65 billion (US$114 million) at Rs 101.10 per share through Qualified Institutional Placement.
Global signals remain weak amid the ongoing war in Ukraine and there is no hope of a resolution on the horizon as Russia-Ukraine talks fail to progress. At home today, investors will follow the March Wholesale Price Index (WPI) reading announced today. Retail inflation for the month had reached a 17-month high of 6.95 percent from a year ago.
Dr VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said: “In the short term, headwinds are strengthening for the market. Global sentiment is negative with a dollar index above 100, 10-year yields above 2.8 percent , and the global economy is expected to weaken as the war in Ukraine continues. At home in India, Infosys’ results were worse than expected with rising turnover and weakening margins, even as growth prospects look bright. This trend and the outperformance of the mid-caps are likely to continue. A clear trend in the market is value over growth in the market. Investors will have buying opportunities in these segments as they fall”
Wall Street stocks ended lower as bond yields and the dollar rose on Thursday as investors worried about the potential for aggressive tightening in US policy as other central banks around the world eased support. The Dow Jones Industrial Average fell 113.36 points, or 0.33 percent, to 34,451.23, while the S&P 500 lost 54 points, or 1.21%, to 4,392.59 and the Nasdaq Composite, 292.51 points, or 2.14 percent to 13,351.08.
Tokyo shares opened lower in cautious trading Monday, with little indication for the market after a holiday on Wall Street. The benchmark Nikkei 225 index fell 1.25 percent or 337.67 points to 26,755.52 in early trading, while the broader Topix index fell 0.87 percent or 16.46 points to 1,879.85. Investors are closely monitoring China’s GDP data for the January-March quarter during morning hours in Tokyo, he added.
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