Recession fears hit equities; Sensex sinks 1,093 pts, Nifty gives up 17,550

CLOSING BELL: PSU banks, auto, IT, metal, and realty stocks plunged the most on the bourses. Their respective indices on the National Stock Exchange declined between 2 and 4 per cent

MARKET LIVE: Selloff intensifies, Sensex down 1,100pts; Nifty below 17,550

CLOSING BELL

Stock market highlights: Bears prawled on Dalal Street on Friday as recession fears hammered global equities. Key indices crumbled under heavy selling pressure today with banks (especially in the public sector), auto, IT, metal, and realty stocks plunging the most on the bourses. Their respective indices on the National Stock Exchange (NSE) declined around 2-4 per cent.

At the headline level, the S&P BSE Sensex crashed 1,247 points intra-day before ending at 58,841, down 1,093 points or 1.82 per cent. The NSE Nifty50, too, sunk to a low of 17,505 before shutting shop at 17,530, down 346 points or 1.94 per cent.

The broader markets witnessed an equally brutal on-slaught with the Nifty MidCap 100 and SmallCap 100 falling in the range of 2.5 per cent to 3 per cent. Volatility index -- India VIX -- surged 8 per ent today to settle near 20-odd level.

ALSO READ: Three reasons why Sensex has crashed over 1,400 points in last 3 sessions

Global cues

European markets were trading lower Friday as growth fears, expectations for further rate hikes and continued volatility in the energy market weighed on stocks. The pan-European Stoxx 600 fell 1 per cent, with all sectors in the red. The UK's FTSE 100 was flat, Germany's DAX down 1.7 per cent, and France's CAC 40 fell 1.8 per cent.

Asia-Pacific shares fell on Friday as well, with Nikkei falling the most, down 1 per cent. On Wall Street, early indications suggested opening cuts of 1 per cent later today.

ALSO READ: Global stock markets can retest June 2022 lows, cautions Chris Wood

4:10 PM

MARKET COMMENT: S Ranganathan, Head of Research at LKP Securities

Indian Markets today finally chose to mirror global cues after out-performing global peers in the recent past. Weaker domestic flows for last month despite SIPs maintaining their run rate led to profit taking as all sectoral indices ended in the red. As global investors brace for a further interest rate hike post the US inflation data released recently, the RBI too has its task cut out in India when they meet at the end of this month. Spectacular Monsoon in India coupled with several positive Tailwinds provides a plethora of investment opportunities in the broader markets.

4:07 PM

TECHNICAL VIEW: Rupak De, Senior Technical Analyst at LKP Securities

Nifty slipped below the falling trend line on the daily chart suggesting a waning bullishness. On the daily timeframe, the index has fallen below the near-term moving average, 20 EMA. The momentum oscillator is in bearish crossover and falling. The trend for the near term looks negative; immediate support is seen at 17500, below which the Nifty may fall towards 17350. On the higher end, resistance is visible at 17700.

4:05 PM

MARKET COMMENT: Vinod Nair, Head of Research at Geojit Financial Services

With persistent bearish pressure from global stocks amid rising yields and dollar index, the domestic market surrendered to the global trend despite its strong decoupling scenario and encouraging macroeconomic data. Post the release of US inflation data, which showcased a MoM increase in inflation, the global market has been pricing in the likelihood of a more aggressive policy response from the Fed.

4:03 PM