reduced investor wealth 86,741.74 crore on Wednesday, indicating weakness in the global equity markets Amid rising tensions between Russia and Ukraine.
Indian stocks recovered from their day’s lows but closed on the red mark on Wednesday following global cues. Globally, stocks were under renewed pressure on Wednesday as Russia showed no signs of stopping its attack on Ukraine.
The Sensex ended the day down 778.38 points at 55,468.90, while the Nifty ended 187.45 points lower at 16,606.45.
Auto and bank stocks declined, while metals rose. Nifty Bank, Financial, Auto indices fell over 2%, while Metals indices closed up over 4%. Broader markets also ended the day in the red, with India VIX rising 2%.
A rise in crude oil prices and foreign capital outflow also weighed on investor sentiment.
Market capitalization of companies listed on BSE declined 86,741.74 crore to reach 2,51,52,303.35 crore with massive selling.
Maruti Suzuki was the top loser in the Sensex pack, plunging 6%, after the country’s largest carmaker reported a fall in sales and production data for February, impacted by a global semiconductor shortage. Heavy selling was also affected by other auto stocks.
Dr Reddy’s, Asian Paints, ICICI Bank, HDFC Twins and UltraTech Cement were among other major laggards, slipping up to 5.14%. On the other hand, Tata Steel, Titan, Reliance Industries, Nestle India and Axis Bank rose up to 5.54 per cent.
Market heavyweight Reliance Industries jumped 1.67% after crude oil prices touched $110 a barrel. Market breadth was negative, with 23 out of 30 Sensex constituents closing in the red.
“Indian markets were hit with a double whammy today with geopolitical tensions being a major headwind, while sharp jump in crude oil prices is a major risk for the Indian market as Brent crude crossed the $110 mark. When we look at the headline indices, the market looked very weak but there was some buying in the broader market from the lower levels.”
As of now, news flows related to Russia-Ukraine crisis and volatility in crude oil prices are the major factors of market volatility, he added.
Ajit Mishra, VP of Research, said, “Markets were volatile amid weak global cues and declined by over one per cent. A weak start was triggered by news of intensifying Russia-Ukraine war, which pushed up crude oil prices. further worsened citing sharp surge.” Religare Broking Limited
(with inputs from PTI)
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