Amid global market weakness, indices tumble over 1%
Benchmark indices tumbled over 1% on Thursday marking their fourth consecutive session of decline. The decline came amid global market weakness weighing heavily on investor sentiment.
Domestic stock market ended in negative territory, taking benchmark Sensex down by 335 points pushed by the losses in financial stocks. Further, negative cues from global markets contributed to the Sensex’s downfall.
The S&P BSE Sensex ended 335.06 points or 0.88 per cent lower at 37,736.07. IndusInd Bank emerged as the biggest loser as it fell 5.6 per cent on the Sensex charts.
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HDFC, Axis Bank, PowerGrid, SBI, Bajaj Finserv and Bharti Airtel were among other top laggards that pulled down the Sensex from gaining.
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On the other hand, Sun Pharma (up by 3.5 per cent), Maruti, Infosys and Reliance Industries were among the gainers.
Similarly, the NSE Nifty tumbled 100.70 points or 0.90 per cent to 11,102.15 levels. Volatility index, India VIX, gained over 3 per cent to 24.90 levels.
In the broader market, the S&P BSE MidCap and SmallCap rose 0.38 per cent and 0.43 per cent respectively.
According to Narendra Solanki, Head- Equity Research (Fundamental), Anand Rathi, Indian markets opened in green following mixed global cues as US Fed kept rates on hold.
However, during the afternoon session, market sentiment turned cautious as doubts rose on further deterioration of the asset quality of financial companies. The selloff was led by banks and financial stocks, he added.
Markets also turned choppy on the expiry of July derivatives, traders said.
Bourses in Shanghai, Hong Kong and Tokyo ended in the red, while Seoul settled on a positive note.
Stock exchanges in Europe were trading with losses in early deals.
Global oil benchmark Brent crude was trading 1.27 per cent lower at USD 43.53 per barrel.
In the forex market, the rupee fell 4 paise to close at 74.84 against the US dollar.
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