Benchmark Sensex tanked 542 factors to settle at a four-week low whereas Nifty closed beneath the 19,400 mark, extending their losses for a 3rd straight day on Thursday in tandem with a bearish development in global markets following the U.S. rating downgrade.
The 30-share BSE Sensex fell by 542.10 factors or 0.82% to settle at a four-week low of 65,240.68. During the day, it slumped 819.7 factors or 1.24% to 64,963.08.
The NSE Nifty declined beneath the 19,300 mark in intraday commerce earlier than paring among the losses to shut at 19,381.65, nonetheless down by 144.90 factors or 0.74%. It moved in a spread of 19,537.65 to 19,296.45 in day commerce.
In three days of losses, Sensex plunged by round 1,287 factors or 2.16% whereas Nifty has tanked 372 factors or 2.42%.
“Global markets are still grappling with the impact of the U.S. rating downgrade, with spiking bond yield and strengthening dollar index,” Vinod Nair, Head of Research at Geojit Financial Services mentioned.
Fitch Ratings lowered the U.S. authorities credit score rating by one stage, citing rising debt and a gradual deterioration in requirements of governance. The downgrade triggered a sell-off in U.S. inventory markets.
From the Sensex pack, Titan fell probably the most by 2.56% after the corporate reported a 4.3% drop in consolidated web revenue at ₹756 crore for the June quarter.
Bajaj Finserv, ICICI Bank, HDFC Bank, Reliance Industries, Nestle, UltraTech Cement, Bajaj Finance, Maruti, Tata Consultancy Services, IndusInd Bank and State Bank of India have been the most important laggards.
Infosys emerged as the most important gainer rising by 0.63%. JSW Steel, NTPC and Power Grid have been additionally among the many gainers. In whole, 23 Sensex inventory dropped whereas seven superior.
The pharma sector managed to climate the storm because of its robust earnings end result, whereas mid and small-cap shares outperformed the benchmark index, Mr. Nair mentioned.
“The domestic services PMI has surpassed market expectations, reaching a 13-year high due to a rise in new orders, particularly in international sales,” he added.
In the broader market, the BSE smallcap gauge climbed 0.23% and midcap index gained 0.14%.
Among indices, realty fell by 1.85%, metallic declined by 1.15%, bankex (1.06%), monetary companies (0.94%), oil & gasoline (0.92%) and client durables (0.84%).
Healthcare, utilities and energy have been the gainers.
“The recent drift in the global indices is putting pressure now and we expect the negative tone to continue,” Ajit Mishra, SVP – Technical Research, Religare Broking Ltd mentioned.
In the broader market, Sanghi Industries jumped 5 per cent after Ambuja Cements introduced the acquisition of a majority stake within the cement producer at an enterprise worth of ₹5,000 crore.
Ambuja Cement shares closed greater by 2.87%.
In Asian markets, Seoul, Tokyo and Hong Kong ended within the damaging territory whereas Shanghai settled within the inexperienced. European markets have been buying and selling within the purple.
Foreign institutional traders (FIIs) offloaded equities price ₹1,877.84 crore on Wednesday, in accordance with trade information.
Global oil benchmark Brent crude dipped 0.46% to $82.82 a barrel.
Meanwhile, India’s companies sector development touched a 13-year excessive in July as a considerable enchancment in demand circumstances and pick-up in worldwide gross sales induced the strongest enhance in new enterprise and output, a month-to-month survey mentioned on Thursday.
