Sensex plunges over 500 points; Nifty tests 17,600
Equity benchmark Sensex slumped over 500 points in early trade on Wednesday, tracking losses in index majors HDFC Bank, ICICI Bank, and Infosys amid a heavy selloff in the global markets. The 30-share Sensex was trading 501.74 points or 0.84 percent lower at 59,165.86. Similarly, the NSE Nifty declined 135.05 points or 0.76 percent to 17,613.55.
Who were the top gainers and losers?
ICICI Bank was the top loser in the Sensex pack, shedding nearly two percent, followed by HDFC Bank, Maruti, Bajaj Auto, Infosys, and Bajaj Finserv. On the other hand, Dr. Reddy's, Tata Steel, Sun Pharma, and Nestle India were among the gainers.
FIIs offloaded shares worth Rs. 1,957.70 crore on Tuesday
In the previous session, the 30-share index ended 410.28 points or 0.68 percent lower at 59,667.60, and Nifty declined by 106.50 points or 0.60 percent to close at 17,748.60. Foreign institutional investors (FIIs) were net sellers in the capital market as they offloaded shares worth Rs. 1,957.70 crore on Tuesday, as per the exchange data.
Surge in US 10-year yields spooked US equity markets: Expert
According to VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, the surge in the benchmark US 10-year yields to 1.546 percent spooked equity markets in the US with cuts of above two percent in S&P 500 and Nasdaq. "The rise in US bond yields triggering correction in equity markets has been a known threat for some time now," he said.
Rise in dollar index indicates profit booking in stocks: Expert
"But what triggered this sudden spike in the bond yield was the Fed chief Jerome Powell's statement that inflation may persist for a much longer time," the expert further said. Further, he noted that the rise in the dollar index to 93.7 levels indicates profit booking in the stocks and safe-haven buying into the dollar.
Brent crude was trading at $77.17 per barrel
"It is too early to conclude that this is a trend reversal for markets. But at present elevated valuations, the risk is high. Investors may watch for consolidation in markets," he added. Elsewhere in Asia, bourses in Shanghai, Hong Kong, Tokyo, and Seoul were trading with heavy losses in mid-session deals. Meanwhile, international oil benchmark Brent crude fell 1.51 percent to $77.17 per barrel.