Sensex tumbles over 400 points, Nifty slips below 17,550

Sensex tumbles over 400 points, Nifty slips below 17,550

Domestic benchmark indices opened lower on Wednesday amid fears that global central banks will continue to ramp up interest rates for some time to quell inflation.

At 9.16 am, the BSE Sensex was trading 423.89 points or 0.72 per cent lower at 58,773.10. Nifty50 was trading at 17,545.95, down 109.65 points or 0.62 per cent.

V K Vijayakumar, Chief Investment Strategist at

said that there are near-term strong headwinds for risky assets, globally. Bonds are in a strong bear market.

“US 10-year yield at 3.34 per cent and dollar index above 110 are strong headwinds for capital flows to EMs like India. FPIs are buying in the cash market but hedging through increasing short positions in the derivatives market. High volatility with downward bias is in store for the markets in the near-term,” Vijayakumar said.

When globally equities correct, India too will correct. But India will fall less since falling crude, decent economic growth, impressive corporate earnings and retail investor enthusiasm will support the market at lower levels, Vijayakumar added.

Among Sensex stocks, Bharti Airtel fell 1.66 per cent to Rs 748.65. IndusInd Bank, Kotak Bank, HDFC and HCL Tech down 1.52 per cent, 1.16 per cent, 0.94 per cent and 0.93 per cent, respectively. Reliance Industries, Infosys and Axis Bank declined 0.90 per cent, 0.89 per cent and 0.87 per cent, respectively.

Sectorally, the Nifty Private Bank index fell 0.67 per cent, while Nifty IT declined 0.49 per cent. However, Nifty Midcap50 and Smallcap50 rose 0.17 per cent and 0.40 per cent, respectively.

The dollar index, which tracks the movement of the greenback against a basket of six major world currencies, rose 0.32 per cent to 110.56 level.

On Tuesday, US markets ended lower. Nasdaq was down 0.74 per cent, Dow Jones fell 0.55 per cent and S&P 500 ended 0.41 per cent lower.

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