Benchmark indices fell on Thursday as macro risk weighed on investors, costing investors 6. 6.7 trillion. U.S. markets posted their worst one-day fall since June 2020 amid retailers’ quiet earnings and the possibility of the central bank tightening its aggressive policy to tackle inflation. What was added to the route was a report by JPMorgan that downgraded the entire IT sector, dragging the IT index sharply. Software stocks, which boast the highest weight in the Nifty50 after financial services, fell the most in Thursday’s trade. Immersion indices in frontline stocks such as Infosys, TCS, Wipro, HCL Tech and Tech Mahindra had a big impact.
The market fear gauge – India VIX – rose more than 10% to 24.56 on Thursday. The market capitalization of BSE-listed companies fell by Rs 6.7 trillion from Rs 255.77 trillion a day earlier to Rs 249.06 trillion on Thursday. While the Sensex was down 1,416.30 points, or 2.6%, at 52,792.23, the Nifty-50 was down 430.90 points, or 2.7%, at 15,809.40, its worst one-day performance since February 24. Both the Sensex and Nifty are now around 7% D-7%. Until this month. The gauge for IT stocks – the Nifty IT Index – fell 5.7% to mark its biggest one-day fall since March 2020. With Thursday’s fall, the index fell 28% from its January high of
Nifty Midcap and Smallcap lost 3% and 2.7%, respectively.
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Naveen Kulkarni, chief investment officer at Axis Securities, said: “Growth in the global economy is slowing down as central banks tighten liquidity. There are no signs that the war will be easy, which will keep fuel and food prices high. Both of these variables point to a kind of stabilization situation worldwide, which could lead to considerable cost reduction. This is leading to greater instability in the global equity market, including in India. “
However, he believes that market momentum is expected to improve in the second half of the financial year, once the global recession and the impact of high rates on market prices.
Outflows from foreign portfolio investors continue to weigh on the market. On Thursday, FPIs offloaded মূল 630.4 million worth of shares, bringing the outflow to $ 4.3 billion for the month. Since January, they have sold .6 21.6 billion worth of Indian equity, according to Bloomberg data. Domestic institutional investors bought মূল 415 million worth of shares on Thursday, according to temporary data from the exchange. Srikant Chauhan of Kotak Securities said, “Unless there are FII net sellers, it will be difficult to reverse the southbound journey.”
India was the worst performing market in Asia on Thursday. Hong Kong’s Hang Seng was down 2.5% and Japan’s Nikkei was down 225 1.9%. On the other hand, China’s Shanghai Composite ended up 0.36%.
Among Nifty stocks, Wipro, HCL Tech and Infosys topped the list, falling 6.3%. ITC backed the trend in an otherwise volatile session as the stock rose 3.3% after the company jumped 12% in its Q4 net profit to Rs 4,191 crore.