The benchmark indices started the session on a weak note and selling intensified during afternoon trade, with almost all sectoral indices ending in the red.
The domestic equity market on Monday recorded its biggest one-day fall in nearly two months, with the benchmark Sensex falling nearly 1,546 points below the 58,000 level, triggered by panic sell-offs at counters tracking global stocks. .
The BSE Sensex started the session on a weak note and was further overwhelmed by panic selling as trading progressed and moved over 2,050 points to touch the day’s low of 56,984. Gaining some lost ground towards the fag-end, the index eventually closed at 57,491.51 – down 1,545.67 points or a whopping 2.62%.
Similarly, the NSE Nifty closed at 17,149.10, down 468.05 points or 2.66%.
This was the biggest single-session fall for both the Sensex and Nifty since November 26 last year and also the fifth straight session of loss for the indices.
On the Sensex chart, Tata Steel was the top laggard, falling nearly 6%, followed by Bajaj Finance, Wipro, Tech Mahindra, Titan, Reliance Industries and HCL Tech.
“The Indian market has been under significant pressure over the past few days, following a smart pullback from mid-December, followed by a 7% decline from recent highs. It has been a fairly broad-based correction across sectors and market caps, although Julius More expensive valued names and recent IPOs have seen sharp cuts in new-age companies, said Milind Muchhala, executive director of Bayer.
The weakness mimics the rot in global markets over the past few weeks, particularly in US markets, on continuing concerns of stagnant inflation and Fed action/rhetoric, he said.
Vinod Nair, Head of Research, Geojit Financial Services, said, “Selling in global markets, weak Q3 results and pre-budget panic led to heavy selling in domestic equities as risk sentiments took a hit ahead of the FOMC meeting. Beginning tomorrow.” He added that investors are eagerly awaiting the outcome of the two-day Fed meeting, where the US Central Bank is expected to provide more guidance on its rate hike plans.
Nair said that while all sectors were hit by bad weather, shares of new-age tech companies were hit the most due to fall in profitability amid high valuations.
Elsewhere in Asia, shares in Hong Kong and Seoul ended with losses, while Tokyo and Shanghai were positive.
Equities in Europe were witnessing heavy selling pressure in mid-session deals.
Meanwhile, international oil benchmark Brent crude rose 0.32% to $88.17 per barrel.
On the forex market front, the rupee on Monday weakened by 17 paise to close at 74.60 against the US dollar.
Foreign institutional investors (FIIs) remained net sellers in the capital market as they sold shares worth Rs 3,148.58 crore on Friday, according to stock exchange data.
,