Sensex Tanks 1,000 factors, Nifty Below 16,600 Amid Weak Global Cues; 5 Points


The key benchmark indices weakened in mid-noon offers mirroring the weak cues from the US and UK markets. At 2.25 pm, the BSE Sensex was buying and selling at 55,497, down 1,057 factors or 1.87 per cent and on the right track to snap its 5-day profitable run. Nifty50 was quoting at 16,573, down 298 factors or 1.77 per cent. The broader markets, however, the BSE Midcap and Smallcap indices fell 1 per cent every. India VIX surges over 6 per cent to 27.31.

Top Gainers & Losers

Among Sensex names, Maruti Suzuki added 1.6 per cent to Rs 7,430. Asian Paints, M&M, UltraTech Cement and ITC added as much as 1.6 per cent. HDFC, Bharti Airtel, Sun Pharma, Titan Company and Axis edged larger. Losers included Tata Steel, Kotak Mahindra Bank, Infosys, NTPC and Reliance Industries which declined as much as 2.4 per cent.

Shares of Ruchi Soya Industries surged 18 per cent to Rs 1,140 on the BSE in Tuesday’s intra-day commerce, zooming as a lot as 42 per cent previously two buying and selling periods after the corporate introduced plans to launch Rs 4,300-crore follow-on public providing (FPO) subsequent week.

Retail Inflation

February’s retail inflation print, which got here in above the RBI’s consolation zone at 6.07 per cent, above a ballot estimate of 5.93 per cent, additionally weighed on the investor sentiment. “With inflation above 6 per cent, the current account deficit at nearly 4 per cent of GDP, extreme fiscal stress and an uneven growth recovery, we project a sharp rise in macro vulnerabilities,” stated Nomura India in a be aware.

Investors Eye Fed Outcome

Traders eye the US Federal Reserve’s two-day assembly to resolve the speed coverage. “The US Fed Chair Speech shall be of utmost significance as merchants will likely be searching for indications concerning the tempo of future fee hikes. With inflationary pressures constructing within the US coupled with the Ukraine disaster that’s fueling a rally in commodities, merchants are sure the Fed will kick off a tightening cycle after which increase charges in any respect six subsequent conferences this yr,” Angel Broking said in a note .

According to the CME’s Fedwatch tool, markets anticipate a 25 basis point rise at this meeting but pricing has risen to indicate a 70 per cent chance of a larger 50 basis point hike at its subsequent meeting in May, due to concerns about inflation, the brokerage firm further said.

Oil Tumbles to 2-Week Low

Oil prices extended losses on Tuesday, sliding to a two-week low as ceasefire talks between Russia and Ukraine eased fears of further supply disruptions and surging COVID-19 cases in China fueled concerns about slower demand. Brent futures dropped $5.95 or 5.6 per cent to $100.95 a barrel by 0747 GMT after tumbling by more than $6 to $100.05 earlier in the session. US West Texas Intermediate (WTI) crude fell below $100 level for the first time since March 1, dropping $5.49 or 5.3 per cent to $97.52 a barrel. It fell to as low as $96.70 earlier in the session. Both benchmarks declined by more than 5 per cent the previous day.

Resurgence of Covid

The resurgence of Covid cases in China is also likely to spook investors. In Asia, shares in Australia, South Korea, Hong Kong, and Shanghai were all down, while in Japan it closed on a flat note.

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