Stock Market: Sensex Plunges 984 Points, Nifty Below 16,000 Amid Weak Global Cues; IT Drags

Stock update: On the BSE platform, except ITC, the other constituents were in the red. Tech M was the top loser, down 4.30 per cent, followed by Infosys, Wipro, HCL Tech, TCS

New Delhi: Sensex and Nifty, the two key equity benchmarks, on Thursday extended their losing run and declined sharply in opening trade amid weak cues across global market.

The BSE Sensex plunged 1,154 points, however later recouped some of the losses. At 10.15 am, the 30-share BSE Sensex was down 984 points to 53,223, while the broader NSE Nifty was trading at 15,945, down 295 points.

On the BSE platform, except ITC, the other constituents were in the red. Tech M was the top loser, down 4.30 per cent, followed by Infosys, Wipro, HCL Tech, TCS. The IT stocks have tumbled the indices. Lone gainer ITC was trading in the green, up 2.95 per cent.

Sectorwise, stock of IT, Metals, Realty, and PSB on the Nifty cracked 3 per cent each in early trade.

The broader markets also opened weak in line with frontline indices. The BSE Midcap and Smallcap indices sank up to 2 per cent. 

On the BSE, the market breadth was very negative with 1,170 stocks declining, while 423 advancing.

The India VIX (volatility index) surged 9 per cent to 24 levels indicating investors’ worry.  

In the previous trading, the BSE benchmark settled 109 points (0.20 per cent) lower at 54,208 on Wednesday. The NSE Nifty dipped 19 points (0.12 per cent) to end at 16,240.

Meanwhile, Asian markets in Seoul, Shanghai, Hong Kong, and Tokyo were also trading lower.

In the US, stock exchanges had ended significantly lower on Wednesday. "US markets saw the worst sell-off since June 2020 as inflation fear looms," Mohit Nigam, head - PMS, Hem Securities, told the PTI.

Global oil benchmark Brent crude gained 1.61 per cent to $110.87 per barrel.

Foreign institutional investors continued to offload shares worth Rs 1,254.64 crore on Wednesday, as per stock exchange data.

"Deteriorating macro sentiments such as soaring inflation, recession fears, and the prospect of the Federal Reserve getting even more hawkish will continue to keep benchmarks on the edge. Another main reason for the pessimism can be attributed to relentless selling from the FII camp," said Prashanth Tapse, vice-president (research), Mehta Equities.