Stock Market: Sensex Tanks 552 Points, Nifty Nears 17,750 Tracking Negative Global Cues

Stock update: Mahindra & Mahindra, Tech Mahindra, TCS, Wipro, HDFC, Infosys, Axis Bank, HCL Technologies, and Power Grid were among the major losers on the Sensex platform

Sensex and Nifty, the two equity benchmarks, on Friday opened lower amid weak global trends. The domestic indices declined rapidly because of foreign fund outflows and fears of recession in the global economy that have dented investor sentiments.

At 10.30 am, the BSE Sensex plunged 552 points to 59,381, while the broader NSE Nifty declined 170 points to 17,707.

On the 30-share Sensex platform, Mahindra & Mahindra, Tech Mahindra, TCS, Wipro, HDFC, Infosys, Axis Bank, HCL Technologies, and Power Grid were among the major losers. On the flip side, only five scrips were advancing. IndusInd Bank, Bajaj Finance, Sun Pharma, Titan, and Asian Paints were among the early gainers.

In broader markets, Nifty Midcap 100 and Nifty Smallcap 100 declined up to 0.3 per cent.

All sectors also plunged in the negative zone. Nifty Auto, Nifty Metal, and Nifty IT indices slipped the most, over 1 per cent.

In the previous session on Thursday, the BSE benchmark ended 412 points (0.68 per cent lower) at 59,934, the Nifty dipped 126 points (0.7 per cent) to end at 17,877.

In Asian markets, Seoul, Tokyo, Shanghai, and Hong Kong were trading lower. The US markets had ended lower on Thursday.

“The market has started showing some indications of fatigue. Globally, the major concern now is that the Fed might oversteer the economy and end up raising rates too much too fast, pushing the US economy into a sharp recession,” said V K Vijayakumar, chief investment strategist, Geojit Financial Services. Sharply rising rates, bond yields and dollar are negatives for equity, he pointed out.

“In this challenging environment it would be difficult for India to sustain the decoupling from the global trend which has been a recent pattern in India. Moreover, FIIs have halted their sustained buying and have turned sellers, though this is not yet a trend,” Vijayakumar added.

The international oil benchmark Brent crude climbed 0.18 per cent to $91 per barrel.

Foreign institutional investors offloaded shares worth Rs 1,270.68 crore from the domestic market on Thursday, according to data available with the BSE.

Meanwhile, the rupee depreciated by 11 paise to 79.82 against the US dollar in opening trade on Friday, tracking the strength of the American currency and a negative trend in domestic equities. In initial deals, the local unit also touched 79.79 against the dollar.