Indian equity benchmarks plunged over 1% on Tuesday, dragged by a global market rout and selling in IT stocks, reversing gains from the previous session. The BSE Sensex tanked 893.39 points (1.16%) to close at 76,200.68, after hitting an intraday low of 76,082.51. The NSE Nifty fell 278.80 points (1.16%) to settle at 23,824.10.
Global Markets in Red, IT Stocks Lead Losses
Asian markets ended sharply lower, with South Korea's Kospi plunging 10%. Japan's Nikkei 225, Shanghai's SSE Composite and Hong Kong's Hang Seng also closed in the red. European markets traded negative as well. The global selloff was driven by a technology-led decline and expectations of further US monetary tightening.
Among Sensex stocks, Infosys and Tata Consultancy Services each fell over 3%. Other laggards included Bharat Electronics, Tata Steel, Adani Ports, Eternal, HCL Tech and State Bank of India. Power Grid, Axis Bank, Sun Pharma and Maruti Suzuki were among the gainers.
FII Outflows, Weak Rupee Add to Pressure
Foreign Institutional Investors (FIIs) sold equities worth Rs 635.91 crore on Monday, according to exchange data. A weaker rupee and growing expectations of US rate hikes further dampened investor sentiment.
Brent crude oil declined 0.67% to USD 77.46 per barrel. The Indian rupee also weakened, adding to the cautious mood.
Market Commentary
Ponmudi R, CEO of Enrich Money, an online trading and wealth tech firm, said: "Indian equity markets snapped their recent oil-driven rally and declined sharply alongside global peers as a broad technology-led selloff weighed on sentiment. Losses were led by the IT sector, which declined more than 2 per cent, while a weaker rupee and growing expectations of further US monetary tightening added to investor caution and weighed on overall sentiment."
Previous Session Gains Wiped Out
On Monday, the Sensex had climbed 291.17 points (0.38%) to 77,094.07, and the Nifty surged 89.80 points (0.37%) to 24,102.90. Tuesday's fall erased those gains and pushed indices lower.
