Equity benchmarks fell sharply on Thursday in line with a weak trend in global markets, with the Sensex falling 1,154.78 points in early trade.
Continuous foreign fund outflows and rise in crude oil prices also weighed on the sentiment.
The BSE 30-share benchmark was trading 1,154.78 points lower at 53,053.75. The broader NSE Nifty ended 335.65 points lower at 15,904.65.
From Sensex firms Tech Mahindra, Bajaj Finserv, Infosys, Wipro, Tata Steel, HCL Technologies, Bajaj Finance and State Bank of India were the major laggards in early trade. ITC 30 stocks emerged as the only gainer from the pack.
Asian markets were also trading lower in Seoul, Shanghai, Hong Kong and Tokyo.
Stock exchanges in the US had closed at a very low level on Wednesday.
Mohit Nigam, PMS Head, Hem Securities, said, “The US markets witnessed the worst sell-off since June 2020 due to inflationary scare.”
Meanwhile, international oil benchmark Brent crude rose 1.61% to $110.87 a barrel.
Foreign institutional investors continued selling shares worth ₹1,254.64 crore on Wednesday, according to stock exchange data.
On Wednesday, the BSE benchmark ended 109.94 points or 0.20% lower at 54,208.53. The NSE Nifty fell 19 points or 0.12% to end at 16,240.30.
“Deteriorating macro sentiments such as rising inflation, fears of a recession, and the possibility of an even more bullish Federal Reserve will continue to keep benchmarks on edge. Another key reason for the pessimism can be attributed to relentless selling from the FII camp,” Prashant Taapsee, Vice President (Research), Mehta Equities Ltd. said.