Sensex crashes over 470 points in early trading

Weak trends in global markets and foreign capital outflows weighed on investor sentiment.

Weak trends in global markets and foreign capital outflows weighed on investor sentiment.

Benchmark indices continued to fall on Tuesday, April 12, 2022, with the Sensex plunging over 470 points in early trade as weak trends in global markets and outflows of foreign funds weighed on investor sentiment. The Sensex was trading 470.59 points lower at 58,493.98 in early trading. The Nifty fell 137.7 points to 17,537.25.

From the 30-stock package, early laggards included Tata Steel, State Bank of India, Bajaj Finserv, IndusInd Bank, Larsen & Toubro, Tech Mahindra and Wipro.

In contrast, Maruti Suzuki, HDFC and Kotak Mahindra Bank were the only winners.

“The market will continue to be choppy in the short term, being pulled up and down by positive and negative news. Short-term headwinds continue to be rising US bond yields, which topped 2.8 percent for 10-year and outflows from equity.

“The tech-heavy NASDAQ has weakened significantly and this has also led to some profit bookings in Indian IT stocks. But IT is likely to fare well as TCS results indicate robust deals and order flow,” said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

TCS was unchanged at £3,685.10, down 0.31 percent after it announced its after-close gains on Monday.

The country’s largest software services company, Tata Consultancy Services, opened its fourth-quarter earnings season on Monday with stellar results, breaking through the £50,000 mark for the first time and posting net growth of 7.4 percent year-on-year in profit to ₹9,926 crore.

“US stock markets closed sharply lower on Monday as investors entered the holiday-shortened week in a risk-off mood as rising bond yields weighed on market-leading growth stocks ahead of crucial inflation data.

“Asian markets are trading negatively as investors continue to monitor developments surrounding the COVID situation in mainland China,” said Mohit Nigam, Head – PMS, Hem Securities.

On Monday, the Sensex tanked 482.61 points, or 0.81 percent, to settle at 58,964.57. The Nifty fell 109.40 points, or 0.62 percent, to 17,674.95.

In Asia, Hong Kong, Seoul, Shanghai and Tokyo markets traded lower on trades during the session.

Stocks in the US also closed lower on Monday.

International oil benchmark Brent crude rose 2 percent to $100.45 a barrel.

Foreign institutional investors continued to sell £1,145.24 billion worth of shares, according to stock market data on Monday.

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