New Delhi: Equity indices declined for the fifth consecutive session on Monday with the benchmark BSE Sensex A fall of over 1,500 points amid heavy selling across sectors.
The Sensex fell over 3 per cent to the day’s low of 56,984 in a highly volatile session. The 30-share BSE index then ended marginally down 1,546 points, or 2.62 per cent, at 57,492; while the broad NSE Nifty It closed at 17,149, down 468 points or 2.66 per cent.
Tata Steel, Bajaj Finance, Wipro, Tech Mahindra and Titan were the top losers in the Sensex pack, falling up to 5.98 per cent.
All 30 stocks of the BSE index closed in the red.
Similarly, all sub-indexes closed lower on the NSE platform with Nifty Metal, Realty, Consumer Durables falling over 5 per cent each.
Here are the top reasons for today’s market losses:
* IT, metal, realty stocks were most affected
Technology stocks have been under pressure since last week as investors globally worried about higher inflation and gearing up for tighter monetary policies.
The Nifty IT sub-index fell 3.42 per cent to a seven-week low, having broken over 7 per cent last week.
While the Nifty Metal sub-index fell up to 5.23 per cent. Shares of JSW Steel fell 6.92 per cent after the company’s quarterly net profit missed analysts’ estimates.
Realty shares fell 5.9 per cent to a four-week low, while pharma stocks slipped 1.85 per cent to a nine-month low.
* Experience correction in new age stocks
According to experts, new-age stocks were witnessing pressure as investors are selling IT stocks globally.
Food delivery platform Zomato fell 19.65 per cent and online retailer Nykaa 12.93 per cent, the lowest since its 2021 debut.
Both the stocks have rallied nearly 30 per cent from their highs in November last year.
“Most of the shares that have recently gone public are very expensive and a much-needed correction is now underway,” Anita Gandhi, director of Arihant Capital Markets, told Reuters news agency.
*Investors eye Fed Meet
Investors are worried about how aggressive the Federal Reserve is, which will hold a policy meeting this week.
The Federal Reserve has its inflation-fighting weapons ready to fire and the focus will not be on whether or not they will pull the trigger, but how often.
Historically low interest rates, called quantitative easing, or QE, have helped support the broader market as the economy absorbed a sharp hit from the pandemic in 2020 and then recovered over the past two years.
“The broad selling we saw last week is over and we will be able to get some clarity on the move ahead only after the Fed meeting this week,” Anita Gandhi, director of Arihant Capital Markets, told Reuters news agency.
* Concern over rising inflation
Rising costs are raising concerns that consumers will start reducing spending due to the continued pressure on their wallets.
Also, the outbreak of the Omicron version of the corona virus threatens to slow the recovery from the crisis.
Some economists believe the Fed and other central banks need to move faster to cushion the price hike by raising rates.
US consumer prices rose 7 percent in December from a year earlier, the biggest increase in nearly four decades.
* Weak global signal
Markets across Asia followed US stock exchanges which ended the overnight session with significant losses on Friday. In fact, Wall Street recorded its worst week in 2020 since the pandemic began.
The tech-heavy Nasdaq Composite Index was down 2.7 per cent at 13,768.92. It has fallen for four consecutive weeks and is now down more than 10 percent from its most recent high, considering it a market correction in Wall Street.
The Dow Jones Industrial Average fell 1.3 per cent to end at 34,265.37.
Hang Seng in Hong Kong fell 1.2 per cent to end at 24,656.46. In Australia, the S&P/ASX 200 closed 0.5 per cent lower at 7,139.50.
South Korea’s Kospi fell 1.5 per cent to 2,792.00 on heavy selling by big technology companies such as Samsung and LG Chemical. Thailand’s SET lost 0.7 per cent.
(with inputs from agencies)
The Sensex fell over 3 per cent to the day’s low of 56,984 in a highly volatile session. The 30-share BSE index then ended marginally down 1,546 points, or 2.62 per cent, at 57,492; while the broad NSE Nifty It closed at 17,149, down 468 points or 2.66 per cent.
Tata Steel, Bajaj Finance, Wipro, Tech Mahindra and Titan were the top losers in the Sensex pack, falling up to 5.98 per cent.
All 30 stocks of the BSE index closed in the red.
Similarly, all sub-indexes closed lower on the NSE platform with Nifty Metal, Realty, Consumer Durables falling over 5 per cent each.
Here are the top reasons for today’s market losses:
* IT, metal, realty stocks were most affected
Technology stocks have been under pressure since last week as investors globally worried about higher inflation and gearing up for tighter monetary policies.
The Nifty IT sub-index fell 3.42 per cent to a seven-week low, having broken over 7 per cent last week.
While the Nifty Metal sub-index fell up to 5.23 per cent. Shares of JSW Steel fell 6.92 per cent after the company’s quarterly net profit missed analysts’ estimates.
Realty shares fell 5.9 per cent to a four-week low, while pharma stocks slipped 1.85 per cent to a nine-month low.
* Experience correction in new age stocks
According to experts, new-age stocks were witnessing pressure as investors are selling IT stocks globally.
Food delivery platform Zomato fell 19.65 per cent and online retailer Nykaa 12.93 per cent, the lowest since its 2021 debut.
Both the stocks have rallied nearly 30 per cent from their highs in November last year.
“Most of the shares that have recently gone public are very expensive and a much-needed correction is now underway,” Anita Gandhi, director of Arihant Capital Markets, told Reuters news agency.
*Investors eye Fed Meet
Investors are worried about how aggressive the Federal Reserve is, which will hold a policy meeting this week.
The Federal Reserve has its inflation-fighting weapons ready to fire and the focus will not be on whether or not they will pull the trigger, but how often.
Historically low interest rates, called quantitative easing, or QE, have helped support the broader market as the economy absorbed a sharp hit from the pandemic in 2020 and then recovered over the past two years.
“The broad selling we saw last week is over and we will be able to get some clarity on the move ahead only after the Fed meeting this week,” Anita Gandhi, director of Arihant Capital Markets, told Reuters news agency.
* Concern over rising inflation
Rising costs are raising concerns that consumers will start reducing spending due to the continued pressure on their wallets.
Also, the outbreak of the Omicron version of the corona virus threatens to slow the recovery from the crisis.
Some economists believe the Fed and other central banks need to move faster to cushion the price hike by raising rates.
US consumer prices rose 7 percent in December from a year earlier, the biggest increase in nearly four decades.
* Weak global signal
Markets across Asia followed US stock exchanges which ended the overnight session with significant losses on Friday. In fact, Wall Street recorded its worst week in 2020 since the pandemic began.
The tech-heavy Nasdaq Composite Index was down 2.7 per cent at 13,768.92. It has fallen for four consecutive weeks and is now down more than 10 percent from its most recent high, considering it a market correction in Wall Street.
The Dow Jones Industrial Average fell 1.3 per cent to end at 34,265.37.
Hang Seng in Hong Kong fell 1.2 per cent to end at 24,656.46. In Australia, the S&P/ASX 200 closed 0.5 per cent lower at 7,139.50.
South Korea’s Kospi fell 1.5 per cent to 2,792.00 on heavy selling by big technology companies such as Samsung and LG Chemical. Thailand’s SET lost 0.7 per cent.
(with inputs from agencies)
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