Sensex crashes 1,172 points, Nifty settles below 17,200 points weighed by IT and financial stocks
The benchmark BSE and National Stock Exchange (NSE) stock indices ended lower for the fourth consecutive session, standing about 2% lower on Monday, weighed by information technology (IT) and financial stocks in a context of weak trends in Asian markets.
The S&P BSE Sensex fell 1,172.19 points (2.01%) to end at 57,166.74 while the Nifty 50 slipped 302.00 points (1.73%) to settle at 17,173 .65. Both indexes had opened over 1.5% earlier in the day and tumbled as low as 2.57%, with the BSE benchmark hitting a low of 56,842.39 and the wider Nifty touching 17,067.85.
On the Sensex pack, Infosys was the big loser of the day with a drop of more than 7%. It was followed by HDFC twins – Housing Development Finance Corporation (HDFC) and HDFC Bank, Tech Mahindra, Wipro and Tata Consultancy Services (TCS). In contrast, NTPC, Tata Steel, Maruti Suzuki India, Titan Company, Hindustan Unilever (HUL) and Mahindra & Mahindra were the top gainers on Monday.
Broader market indices fared comparatively better than their benchmark peers. The S&P BSE MidCap Index stood at 24,747.35, down 237.90 points (0.95%), while the S&P BSE SmallCap ended at 29,223.81, down 297.79. points (1.01%).
“The unfavorable start to the earnings season in heavy IT and banking stocks led to strong selling. Below-expected results prompted the market to worry about headwinds facing the IT sector, such as the attrition, wage inflation, declining usage and reduction in IT spending by industries due to geopolitical and macroeconomic issues The degree of downfall is high as the sector was trading at a high valuation and the risk of a downward revision to the outlook has increased,” said Vinod Nair, head of research at Geojit Financial Services.
Stocks were mostly weaker in Asia and U.S. futures fell after China reported Monday that its economy grew at an annual rate of 4.8% in January-March.
Benchmarks fell in Tokyo, Seoul, Taipei and Shanghai. Seoul rose slightly. Markets in Europe and Hong Kong and Sydney were closed for the holidays.
Wall Street benchmarks fell last week before closing for the Easter holiday.
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