HCL Tech was the top loser in the Sensex pack, falling 4.17 per cent, followed by Tech Mahindra, Dr Reddy’s, Wipro, TCS, Titan and Infosys.
Equity benchmark Sensex tumbled 581 points on Thursday, coupled with a global sell-off after the US Federal Reserve signaled policy tightening from March. Traders said depreciating rupee and continued foreign fund outflows weighed on the sentiment.
The 30-share BSE index closed at 57,276.94, down 581.21 points or 1.00 per cent. Similarly, the broader NSE Nifty fell 167.80 points or 0.97 per cent to 17,110.15.
HCL Tech was the top loser in the Sensex pack, falling 4.17 per cent, followed by Tech Mahindra, Dr Reddy’s, Wipro, TCS, Titan and Infosys.
On the other hand, Axis Bank, SBI, Maruti, Kotak Bank, Sun Pharma and IndusInd Bank were among the gainers, rising up to 2.81 per cent.
The Federal Reserve left policy rates unchanged on Wednesday, but Chairman Jerome Powell said the US central bank could raise interest rates in March and end its massive bond buying program to tackle rising inflation.
Investors fear foreign capital outflows from emerging markets like India following the rate hike in the US.
“As the Fed left key interest rates close to zero, its flamboyant remarks washed away sharp gains in global markets, leaving a gap in the indices to open back home.
“As FPIs continued to book profits from Indian equities, value stocks bounced back over 5 per cent in PSU Bank index today afternoon trade, backed by auto stocks led to smart recovery. IT and pharma stocks saw gains as S Ranganathan, head of research, LKP Securities, said, “Earnings led to demand for textile stocks in the broader market.”
Ajit Mishra, VP – Research, Religare Broking Limited said that extreme volatility on the global front is keeping the domestic markets on edge.
“With the US FOMC meeting, we now expect some stability. However, the current earnings season and the upcoming Union Budget will keep the participants on their toes.
“The recent boom in the banking sector is certainly encouraging, but other sectors should also lend support to any meaningful recovery. We think it’s prudent to stay light and let the markets stabilize,” he said.
Sector-wise, BSE IT, Tech, Consumer Durables, Healthcare and Realty fell up to 3.10 per cent, while Bankex, Auto and Finance gained.
In the broader markets, BSE midcap and smallcap shares fell up to 1.25 per cent.
Elsewhere in Asia, shares in Shanghai, Hong Kong, Seoul and Tokyo ended sharply lower on the Fed’s stance. Stock exchanges in Europe were also trading largely in the red in mid-session deals.
Meanwhile, international oil benchmark Brent crude fell 0.16 per cent to $89.82 a barrel. The Indian rupee on Thursday closed down 31 paise at 75.09 against the US dollar, recording a fall for the third consecutive session.
Foreign institutional investors (FIIs) were net sellers in the capital markets on Tuesday, pulling out Rs 7,094.48 crore, according to provisional data.
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