Experts say, bears are now in a more dominant position and are likely to push the index further down
Experts say, bears are now in a more dominant position and are likely to push the index further down
On Monday, the BSE benchmark Sensex fell 1,747 points, while the Nifty fell below the 17,000 level. Russia-Ukraine tensions rising Started to withdraw from risky assets globally.
Traders said depreciating rupee and foreign fund outflow added to the gloom.
Falling for the second consecutive session, the 30-share BSE Sensex closed 1,747.08 points or 3% lower at 56,405.84. This was the biggest drop in a day since February 26, 2021.
Similarly, the broader NSE Nifty fell 531.95 points or 3.06% to 16,842.80 – closing below the key 17,000-level for the first time this year.
The Sensex has now lost 2,520.19 points in just two sessions. Investors have lost over ₹8.47 lakh crore in two days, the market capitalization of all the firms listed on BSE is ₹2,55,42,725.42 crore.
On the Sensex chart, except TCS, all the stocks closed with heavy to moderate losses on Monday. Tata Steel was the biggest laggard, falling 5.49%, followed by HDFC, SBI, ICICI Bank, IndusInd Bank, Kotak Bank and Maruti.
“Rising tensions between the US and Russia over Ukraine pushed up oil prices and forced investors to dump riskier assets. Risk sentiment was further dampened ahead of the Fed’s emergency meeting, prompting an aggressive Fears of monetary tightening increased.
Vinod Nair, Head of Research, Geojit Financial Services, said, “On the domestic front, the annual WPI inflation moderated to 12.96% in January from 13.56% in December, but has remained low amid moderation in fuel and electricity prices. too high.”
Ajit Mishra, VP – Research, Religare Broking said, “As anticipated, global cues are now setting the trend and the steady rise in crude oil along with the current geopolitical tensions between Russia and Ukraine are among the participants. Not going well. After weeks of consolidation, we think the bears are now in a more dominant position and are likely to push the index further down.” All 19 BSE sectoral indices were hit, with realty, metals and banking falling over 5%.
Broad smallcap, midcap and largecap indices declined up to 4.15%.
Elsewhere in Asia, after concerns that Russia might soon invade Ukraine, closed in the red, which also pushed up oil prices.
European markets were also trading with a sharp decline in the afternoon session.
The US administration has become increasingly vocal about its concerns that Russia will use a false pretext to invade Ukraine. The US has reaffirmed its commitment to defend “every inch” of NATO territory.
Global crude oil benchmark Brent futures on Monday rose 1% to $95.44 a barrel.
On Monday, the rupee had lost 24 paise to close at 75.60 against the US currency.
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