Stock Market Today India, Sensex, Nifty Updates: The benchmark equity indices on the BSE and National Stock Exchange (NSE) fell for the sixth consecutive session, ending nearly 0.9 per cent lower to settle at a two-month low on Wednesday weighed by metals, banking and financial stocks amid weakness in the global market where fears of a global recession dented risk sentiment.
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The S&P BSE Sensex crashed 509.24 points (0.89 per cent) to end at 56,598.28 while the Nifty 50 declined 148.80 points (0.87 per cent) to settle at 16,858.60. Both the indices had opened over 0.8 per cent lower earlier in the day and fell nearly 1.1 per cent in the intraday trade with the BSE benchmark falling to 56,485.67 while the NSE’s barometer touched 16,820.40.
On the Sensex pack, ITC, Axis Bank, Reliance Industries (RIL), Tata Steel, State Bank of India (SBI), Housing Development Finance Corporation (HDFC), IndusInd Bank, HDFC Bank and Bajaj Finserv were the worst performers on Wednesday. In contrast, Asian Paints, Sun Pharmaceutical Industries, Dr. Reddy’s Laboratories, Power Grid Corporation of India, Nestle India, Hindustan Unilever (HUL), Tech Mahindra, Tata Consultancy Services (TCS), Mahindra & Mahindra (M&M) and HCL Technologies were the top gainers.
Among the sectoral indices, the Bank Nifty fell 1.56 per cent and the Nifty Financial Services declined 1.23 per cent. The Nifty Metal index too slumped 1.94 per cent. On the other hand, the Nifty Healthcare index rose 0.86 per cent and the Nifty Pharma climbed 0.85 per cent.
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In the broader market, the S&P BSE MidCap slipped 116.39 points (0.47 per cent) to end at 24,437.61 while the S&P BSE SmallCap declined 120.23 points (0.43 per cent) to settle at 27,870.64. On the NSE, the the volatility index or India VIX rose 2.44 per cent to 22.10.
Going ahead, market participants will look forward to the outcome of the Reserve Bank of India’s (RBI) monetary policy committee (MPC) meeting on Friday for further cues. The MPC started deliberations on the keenly awaited monetary policy amidst expectations of a 50 basis points hike in interest rate to check inflation and improve foreign capital inflow to arrest rupee depreciation against the US dollar.
“Investors continue to be sceptical of the domestic market’s higher premium amid the ongoing global deceleration while foreign investors are fleeing emerging economies in search of safer havens. Although the domestic economy is buoyed by solid fundamentals, the stock market’s appetite for risk has been hindered by the rising worries of a worldwide recession. Domestic investors are turning to IT and pharma companies, which have been in a consolidation phase for the past year and are now gaining from the INR depreciation. The RBI policy meeting is currently underway, and the central bank is likely to raise repo rates by 35-50 basis points, however, the inflation outlook may soften in reaction to declining commodity prices,” said Vinod Nair, Head of Research at Geojit Financial Services.
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Global Market (from Reuters)
Global shares sank to two-year lows on Wednesday as surging borrowing costs and a worsening energy crisis intensified fears that the world could tip into recession, which sent investors dashing for the safe-haven dollar.
The MSCI All-World index fell 0.7 per cent, dropping for a seventh day in a row, to hit its lowest since November 2020. It is heading for a 9 per cent drop in September – its biggest monthly decline since March 2020’s 13 per cent fall.
In Europe, the STOXX 600 lost 1.8 per cent, with every sector except healthcare – often seen by investors as a port in a storm – in the red. Across the region, the export-sensitive DAX fell 2.1 per cent to its lowest since late 2020, while the FTSE 100 fell nearly 2 per cent, and the domestically focussed FTSE 250 lost almost 3 per cent.
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Wall Street looked set for a weak open, as S&P 500 futures fell 1.1 per cent, while Nasdaq futures lost 1.5 per cent.
