The market will remain choppy in the short term, being pulled up and down by positive and negative news, says the expert
The market will remain choppy in the short term, being pulled up and down by positive and negative news, says the expert
The BSE benchmark Sensex plunged over 388 points to close at 58,576.37 on Tuesday, reflecting weakness in index majors Wipro, RIL and Bharti Airtel amid a weak trend in global markets.
Investors also remained cautious ahead of key macroeconomic data announcements – industrial production for February and inflation rate for March – after hours.
The Sensex fell 388.20 points, or 0.66%, to settle at 58,576.37. For the day, the benchmark fell 666 points, or 1.12%, to 58,298.57.
The Nifty fell 144.65 points, or 0.82%, to end at 17,530.30.
From the 30-stock block, the top laggards included Tata Steel, Wipro, Tech Mahindra, Bharti Airtel, Reliance Industries, Larsen & Toubro, and Bajaj Finserv.
In contrast, Axis Bank, Kotak Mahindra Bank, Power Grid, Maruti Suzuki and ICICI Bank were among the 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 have topped 2.8% 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 flows,” said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Tata Consultancy Services (TCS) was unchanged at ₹3,691.45, down 0.13% after the company announced earnings after Monday’s close.
The country’s largest software services company, Tata Consultancy Services, opened the fourth-quarter earnings season on Monday with stellar results, breaking through the £50,000 mark for the first time and posting a 7.4% annual growth in net profit to ₹9,926 crore.
On Monday, the Sensex fell 482.61 points, or 0.81%, to settle at 58,964.57. The Nifty fell 109.40 points, or 0.62%, to end at 17,674.95.
In Asia, markets in Tokyo and Seoul closed lower while Shanghai and Hong Kong traded higher.
European equity markets also stared at a sharp sell-off in early deals. US stocks ended with sharp losses in overnight trading.
International oil benchmark Brent rose 3.20% to $101.6 a barrel.
“Domestic stocks closed lower after global markets were sluggish. Additionally, news of the Russia-Ukraine war, rising bond yields and further supply disruptions due to rising COVID infections in China continue to disrupt market sentiment,” said Mitul Shah, Head Of Research at Reliance Securities.
Foreign institutional investors continued to sell £1,145.24 billion worth of shares, according to stock market data on Monday.
