Sensex tumbles over 500 points on global sell-off
Equity benchmark Sensex tumbled over 500 points in early trade on Wednesday as index majors HDFC Bank, ICICI Bank and Infosys tracking losses amid heavy selling in global markets. The 30-share Sensex was trading at 59,165.86, down 501.74 points or 0.84 per cent. Similarly, the Nifty closed at 17,613.55, down 135.05 points or 0.76 per cent.
ICICI Bank was the top laggard in the Sensex pack, falling nearly 2 per cent, followed by HDFC Bank, Maruti, Bajaj Auto, Infosys and Bajaj Finserv. On the other hand, Dr Reddy’s, Tata Steel, Sun Pharma and Nestle India were among the gainers.
In the previous session, the 30-share index was down 410.28 points or 0.68 per cent at 59,667.60 and the Nifty was down 106.50 points or 0.60 per cent at 17,748.60.
Foreign institutional investors (FIIs) were net sellers in the capital market as they offloaded shares worth Rs 1,957.70 crore on Tuesday, according to exchange data.
According to VK Vijayakumar, chief investment strategist at Geojit Financial Services, a 1.546 per cent rise in the benchmark US 10-year yield shook equity markets in the US with over 2 per cent cuts in the S&P 500 and Nasdaq.
“The correction in equity markets from a rise in US bond yields has been a known threat for some time now. But the reason for this sudden jump in bond yields was Fed chief Jerome Powell’s statement that inflation could persist for a long time,” he said.
Besides, he said a rise in the dollar index to 93.7 levels indicates profit-booking in stocks and safe-haven buying in dollar.
“It is too early to conclude that this is a trend reversal for the markets. But the risk is high at the current high valuations. Investors can keep an eye on the strength in the markets.
Elsewhere in Asia, shares in Shanghai, Hong Kong, Tokyo and Seoul were trading with heavy losses in mid-session deals.
Meanwhile, international oil benchmark Brent crude fell 1.51 per cent to $77.17 a barrel.
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