NSE Nifty 50 The index fell 2.6% to end at 15,774.4, the lowest level since July last year, while the BSE index fell 2.7% to 52,846.7. The 30-share BSE benchmark had closed 1,016.84 points or 1.84 per cent lower at 54,303.44 on Friday.
Market capitalization of BSE-listed firms fell, in line with weak trend in equities 9,75,889.77 Cr to 2,45,19,673.44 crores in just two days.
Commenting on the market crash, Shrikant Chauhan, Head of Equity Research (Retail) at Kotak Securities said, “The market crashed with full force on the first day of the week as the benchmark indices fell below their critical levels across the board. . Selling pressure.”
“There is growing concern among investors that central banks will be more aggressive in increasing interest rates in the coming months to tackle inflation, which will hurt economic growth and put pressure on margins,” Chouhan said. “
“Continuing strength in Brent crude prices, rise in 10-year bond yield to 3.20% from recent low of 2.80% and expected CPI numbers also led the market to decline,” he added.
Bajaj Finserv and Bajaj Finance were the biggest losers on the NSE, falling 7% and 5%, respectively. The NSE Bank index lost 3.1 per cent.
For the Sensex pack, Bajaj Finserv, Bajaj Finance, IndusInd Bank, Tech Mahindra, ICICI Bank, TCS, NTPC, Infosys and State Bank of India were the major laggards today.
In the broader market, the BSE Smallcap gauge fell 3.15% and the Midcap index fell 2.73%.
All sectoral indices on the BSE ended with losses in IT 3.92%, Tech (3.45%), Metal (3.39%), Industrial (3.35%), Finance (3.17%) and Bank (3.12%).
Major sectoral losers in Mumbai trade, information technology stocks on the Nifty fell 4.1%. Sector heavyweights Infosys Ltd and Tata Consultancy Services fell 3.5% and 4.2%, respectively.
2,839 shares declined, while 658 advanced and 116 shares remained unchanged.
The rupee also hit an all-time low as rising fears of an aggressive policy tightening by the US Federal Reserve weighed on investor sentiment on the back of domestic inflation data.
Under pressure from a strong dollar, the rupee hit a record low of 78.28, while the benchmark 10-year bond yield jumped over a three-year high of 7.60%, as investors gave up on emerging market bonds.
Elsewhere in Asia, markets in Seoul, Tokyo, Hong Kong and Shanghai closed with deep cuts. European markets were also facing heavy selling pressure in mid-session deals. US stock exchanges closed with a sharp decline on Friday.
“Warmer-than-expected inflation data in the US last week has upset the markets on the upcoming US Fed policy meeting due to the current week. US Fed may take unexpected policy measures to control inflation following fears of high inflation markets. And that could impact the overall economic health,” said Narendra Solanki, Head- Equity Research (Fundamentals) Anand Rathi Shares & Stock Brokers.
FIIs or foreign institutional investors remained net sellers in the capital market as they sold shares of value 3,973.95 crore on Friday, according to exchange data.