The key benchmark indices Sensex and Nifty ended in the red zone in the highly volatile session on January 27 after Federal Reserve in its policy outcome indicated interest rates hike in the near future.
At close, the Sensex was down 581.21 points or 1 per cent at 57,276.94, and the Nifty down 167.80 points or 0.97 per cent at 17,110.20. About 1447 shares have advanced, 1832 shares declined, and 90 shares are unchanged.
HCL Technologies, Tech Mahindra, Dr Reddy’s Laboratories, TCS and Wipro were the top Nifty losers, while gainers included Axis Bank, SBI, Maruti Suzuki, Cipla and Kotak Mahindra Bank.
Zomato shares dropped 10 per cent today. Investors and traders in Zomato are eager to exit, but the door is closed for now. Trading in the shares has been frozen at the lower end of the 10 percent intra-day circuit filter Rs 90.45. On the NSE, around 1.36 crore sell orders are pending, 26-odd lakh shares on the BSE as well.
On the contrary, IT majors — HCL Tech, Tech M, Wipro, and TCS — were the major draggers, down between 3 and 4 per cent. Dr Reddy’s Labs, Titan Company, Divis Labs, UPL, Hero MotoCorp, and Infosys were the other laggards.
In the broader market, shares of aviation companies came under selling pressure amid rising crude oil prices with InterGlobe Aviation, which runs IndiGo, down as much as 7 per cent and its peer SpiceJet hitting a 52-week low, down 5 per cent on the BSE in Thursday’s intraday trades. These companies have significant exposure to price movement of Aviation Turbine Fuel (ATF) which is a derivative of crude oil.
That apart, the shares of Lux Industries slipped another 11 per cent to Rs 2,501 on Thursday’s intra-day trade, plunging 29 per cent in the last two straight trading sessions after the market regulator Securities and Exchange Board of India (Sebi) barred 14 entities for insider trading in its scrip.
The domestic markets have been going through a rough patch since the last five trading days. The major reason behind the sharp correction has been the weak global cues amid indications that US Federal Reserve will tighten the liquidity and hike interest rates.
Global cues
Elsewhere, Asian shares fell to their lowest in more than 14 months, short-term US yields rose to 23-month highs and the dollar strengthened on Thursday after the Federal Reserve’s chairman signaled plans to steadily tighten policy. Hong Kong’s Hang Seng index and Australian shares fell 2 per cent and Chinese blue-chips were 0.2 per cent lower. In Tokyo, the Nikkei fell 1.9 per cent, touching its lowest point since December 2020.
Overnight in the US, the key benchmark indices wiped-out solid gains in late trade soon after the US Federal Reserve released the policy minutes.
The Dow Jones and the S&P 500 ended 0.4 per cent and 0.2 per cent lower at 34,168 and 4,350, respectively, as against the day’s high of 34,816 and 4,453, respectively. Similarly, Nasdaq erased more than 450 points from the day’s high, to end almost unchanged at 13,542.
Meanwhile, oil prices fell on Thursday as investors cashed in profits from the 2 per cent gains in the previous session after the U.S. Federal Reserve indicated an interest rate hike in March, leading to a technical correction in surging energy markets.
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