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Sensex nose-dives at 1,939 points, Nifty closes at 14,529 amid global selloff

By Saima Siddiqui 
Updated Date
Sensex nose-dives at 1,939 points, Nifty closes at 14,529 amid global selloff

Mumbai: The Indian equities witnessed a intense selloff in the intraday trade on Friday which triggered distress as Sensex fell as much as 1,939 points or 3.80 per cent to close at 49,100 while Nifty tanked 568 points or 3.76 per cent to close at 14,529. Banking and financial stocks led the fall as the Nifty Bank, Private Bank, PSU Bank and Financial Services indices all fell up to 6.34 percent.

Also Read :- Sensex drops 150 points, Nifty slips below 15,800; ICICI Bank, UltraTech Cement top heave: Stock Market Update

The Sensex was down 1,619 points or 3.2 per cent to 49,419 and Nifty plunged 3.3 per cent or 502 points to 14,595, within three hours since the market opened on February 26.

“Low interest rates made the rally possible form levels of 7,500 and the Nifty has doubled from those levels in last 12 months now signs of interest rate reversal are seen which means liquidity will dry up and easy money will not sustain. Nifty can go down 13,900 levels in the near term given the high valuations Nifty is trading at,” A K Prabhakar, head of research at IDBI Capital was quoted saying by media.

Meanwhile, European and U.S. stock futures also faced turbulence as Eurostoxx 50 futures lost 1.7 per cent while futures for Germany’s DAX and those for London’s FTSE dropped 1.3 per cent each. Whereas, MSCI’s broadest index of Asia-Pacific shares outside Japan plunged more than 3 per cent to a one-month low, its steepest one-day percentage loss since May 2020.

Talking about markets gloomy mood, Chief Investment Strategist at Geojit Financial Services, V K Vijayakumar said, “We are now in a see-sawing market moving up and down in response to positive and negative news. But the long-term texture of the market has been ‘ buy on dips’ and this strategy has been rewarding in this bull run.”

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“Fed’s declared commitment to inject liquidity and keep rates low through 2023 can ensure a buoyant market this year. So, investors can utilize opportunities thrown up by corrections to buy quality stocks in performing sectors,” he further said.

Selling pressure was visible as all the 11 sector gauges compiled by the National Stock Exchange (NSE) were trading lower led by the Nifty Bank and Private Bank indexes nearly 5 per cent plunge. Nifty Auto, Financial Services, IT, Metal, PSU Bank and Realty indexes also fell around 2-5 per cent.

Mid- and small-caps also witnessed selling pressure as Nifty Midcap 100 index fell 2 per cent and Nifty Smallcap 100 index dropped 1.6 per cent, however, it outperforming their larger peers as the BSE Midcap and Smallcap indices were down by 2.33 percent and 1.37 percent, respectively.

All shares in the Nifty 50 basket, excluding Sun Pharma, were trading lower led by ICICI Bank’s 5.2 per cent decline.

Kotak Mahindra Bank, Axis Bank, Mahindra & Mahindra, Bajaj Finserv, JSW Steel, GAIL India,, HDFC Bank, IndusInd Bank, Bajaj Finance, HDFC, Power Grid, Hero MotoCorp, Larsen & Toubro, ONGC, Adani Ports, Tata Steel and State Bank of India also fell between 3-5 per cent.

Also Read :- Bandhan Bank net profit for Q4 falls 80% to ₹103 cr on higher provisions

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