Sensex sheds 844pts in late sell-off, Nifty breaks 17,000; IT index down 2%

CLOSING BELL: Sectorally, apart from the BSE IT index, which declined 2 per cent, the Consumer Durables, Metal and Realty indices were the other major losers

Sensex sheds 844pts in late sell-off, Nifty breaks 17,000; IT index down 2%

CLOSING BELL: After gyrating in a narrow band, albeit in the negative zone, for the major part of the trading day, the key benchmark indices cracked heavily in late trades as rising geopolitical crisis, tepid FII flows, and a gloomy global market scenario weighed.

Even better-than-expected Q2 performance from TCS, and a proposed share buyback plan by Infosys failed to cheer investor sentiment.

The BSE benchmark index briefly hovered in the positive zone as the index touched a high of 58,028 this morning. Towards the end of the day, the BSE index had slumped to a low of 57,050 - down 978 points from the high of the day.

The Sensex finally ended with a heavy loss of 844 points at 57,147. In the process, the BSE benchmark index has now shed 1,075 points in the last three straight trading sessions.

The NSE Nifty not only dipped below the 17,000-mark, but also below its psychological 200-DMA (Daily Moving Average) placed at 16,986, yet again. The Nifty 50 finally settled at 16,984 - down 258 points on Tuesday.

Among individual stocks, Infosys was down 2.5 per cent. Shares of Tata Consultancy Services (TCS) declined up to 2 per cent after the company clocked 8 per cent net profit in Q2FY23. READ ANALYSIS HERE

Among other IT stocks, Tech Mahindra too shed 2.5 per cent. HCL Technologies and Wipro too declined 2 per cent each ahead of their Q2 results.

Also read: Earnings Preview - Wipro I HCL Technologies

IndusInd Bank, down 3.7 per cent, was the major per centage loser among the Sensex 30. Nestle India, Tata Steel, Dr.Reddy's, Titan, Reliance Industries, Maruti, and Hindustan Unilever were the other major losers. Axis Bank and Asian Paints were the only gainers, up around a per cent each.

The broader indices also cracked in tandem with the benchmark index. The BSE Midcap and Smallcap indices were down around 1.5 per cent each.

Sectorally, apart from the BSE IT index, which declined 2 per cent, the Consumer Durables, Metal and Realty indices were the other major losers - down 2-3 per cent each.

The overall market breadth, too, was fairly negative with more than two declining stocks for every advancing share on the BSE.

4:06 PM

MARKET COMMENT :: Nifty now eyeing 16,800

>> After the flat start, the Nifty index gradually drifted lower as the session progressed and slipped below the support of 17,100 levels to finally settle around the day’s low at 16,983.55 levels. Pressure in the IT pack combined with a slide in index majors across sectors was weighing on the sentiment. In line with the move, the broader indices too witnessed a decline and lost nearly 2% each.

As we’re not seeing any respite on the global front, any disappointment on earnings or the macroeconomic front may put further pressure. On the index front, we are now eyeing 16,800 in Nifty and its decisive break would reverse the recovery trend. Traders should align their positions accordingly.

Views by: Ajit Mishra, VP - Research, Religare Broking Ltd

4:05 PM

MARKET COMMENT :: India's outperformance makes a case for profit booking

>> India's outperformance till date made a case for profit booking for the FIIs today as geopolitical and currency risks came to the forefront. Practically all sectoral indices ended in the red with the Nifty closing below 17k on a day when nothing was spared. The broader markets too saw a steep correction in several stocks which have been defying gravity and moving up since the past several weeks.

Views by: S Ranganathan, Head of Research at LKP Securities

4:04 PM

MARKET COMMENT :: Investors becoming risk-averse due to rising geopolitical turmoil

>> Investors are becoming risk-averse due to rising geopolitical turmoil as well as worries about the global economic slump. Investors' caution ahead of the announcement of inflation data prevented a better-than-expected start to IT earnings from improving market mood. However, as compared to global counterparts, domestic selling is not as aggressive since FII selling is primarily absorbed by DIIs.

Views by: Vinod Nair, Head of Research at Geojit Financial Services

4:02 PM

Commodity Check :: Brent crude falls over 2% on demand worries

4:01 PM

Bond Market :: Yields on 10-year Indian G-Sec slip on Tuesday

4:00 PM

Global markets :: Bank of England warns of ‘material risk’ to UK financial stability

>> The Bank of England on Tuesday announced an expansion of its emergency bond-buying operation as it looks to restore order to the country’s chaotic bond market.

>> The central bank said it will widen its purchases of U.K. government bonds — known as gilts — to include index-linked gilts from Oct. 11 until Oct. 14.

>> The move marks the second expansion of the Bank’s extraordinary rescue package in as many days, after it increased the limit for its daily gilt purchases on Monday ahead of the planned end of the purchase scheme on Friday.

>> “The beginning of this week has seen a further significant repricing of UK government debt, particularly index-linked gilts. Dysfunction in this market, and the prospect of self-reinforcing ‘fire sale’ dynamics pose a material risk to UK financial stability,” the bank said in a statement Tuesday.

Source: CNBC

3:59 PM

Global markets : US stock futures in red; Nasdaq, S&P500 futures fall 1%

3:57 PM

Global markets :: European markets slide

>> European markets retreated on Tuesday as concerns persisted over the global growth outlook and the prospect of more monetary policy tightening from central banks.

Source: CNBC