Sensex slips 2% on selling banking and IT stocks


Major benchmark indices fell sharply on Monday after selling pressure in banking and IT stocks. The S&P BSE Sensex fell 1,172.19 points, or 2.01%, to 57,166.74.

The biggest losers included Infosys down 7.27%, HDFC (4.81%), HDFC Bank (4.74%), Tech Mahindra (4.69%) and Wipro (3.67%). Likewise, the NSE Nifty Index fell 302 points, or 1.73%, to 17,173.65 points.

“Below-than-expected results from heavyweights like Infosys and HDFC Bank have impacted sentiment,” said Ajit Mishra, VP, Research, Religare Broking Ltd. “A mixed trend was observed among industry indices, with IT and banking being the biggest laggards, while auto, FMCG and energy being the winners.”

“We believe that global indications as well as the outcome of the Q4 results will continue to increase volatility in the coming sessions. As such, we would remain cautious in the markets and recommend traders to hedge their positions,” he added.

“We expect FY23 to see continued volatility in equity markets, particularly in the first half of the year with rising global interest rates and high inflation expected to persist,” said Naveen Kulkarni, chief investment officer, Axis Securities.

“In this scenario, we expect money to flow from long-term debt to equity funds in the second half of the year, which should bode well for equities,” he said.

“We remain positive on sectors such as metals, hospitals, hospitality, oil refining and capital goods. Some underperforming sectors could be discretionary consumption, IT and NBFCs,” he added.

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