The Indian equity benchmarks plummeted thoughtfully on Thursday as markets worldwide slid. Asian shares were at their lowest for over 14 months.
In the short term, U.S. yields rose to 23-month highs, and the dollar strengthened following the chairman of the Federal Reserve announced plans to tighten policy gradually.
Investors also became cautious due to the growing concerns about the political tensions between Russia and Ukraine. Here’s Your 10-Point Cheatsheet To This Big Story:
- At home, as of 9:26 am, 30 shares of the BSE Sensex fell 1,011 points, or 1.75 per cent, to reach 56,847. Meanwhile, the broader NSE Nifty nosedived 180 points or 1.62 per cent to fall under the psychological 17,000 mark, at 16,998.
- Small- and mid-cap stocks were in negative territory in the Nifty Midcap 100 index was down 1.18 per cent, while small-cap shares traded 0.19 per cent lower.
- In the case of specific stocks, Dr Reddy’s was the biggest loser in the Nifty since the stock slid 2.85 per cent to reach Rs 4,277.50. Titan, Grasim Industries, Eicher Motors and HDFC Bank were among the losers. However, ONGC, Axis Bank and Maruti Suzuki India were winners.
- The overall breadth of the market was a bit weak, with 1,030 shares advancing while 1,697 shares were falling on BSE.
- In the 30 share BSE platform, Titan, Titan, Dr Reddy’s, Wipro, HCL Tech, HDFC twins (HDFC and HDFC Bank), Infosys and Bajaj Finserv attracted the most losses as their shares fell by as much as 3.37 per cent. Axis Bank, IndusInd Bank, Maruti and NTPC were among the top gainers.
- Overnight the Wall Street benchmark S&P 500 index lost 0.1 per cent after the Fed announcement about the rate hikes next month. Investors are preparing for the possibility of four rate hikes in the coming year, beginning in March.
- In its most recent policy update, the central bank announced that it could increase U.S. interest rates in March. It also reiterated plans to stop its bond purchases before launching, reducing its assets.
- The highly sensitive U.S. 2 year yield surged in anticipation of Fed tightening. It climbed to a peak of 1.1780 per cent in early morning trading in Asia, the last time it attained in February 2020. The 10-year yield, which is the benchmark for yields, also increased from the close of Wednesday, climbing to 1.8548 per cent, up from 1.846 per cent.
- The Hong Kowloon’s Hang Seng index and Australian shares fell by 2 per cent, and Chinese blue chips fell 0.2 per cent lower. In Tokyo, the Nikkei dropped 1.9 per cent, reaching the lowest since December 20, 2020.
- The US benchmark Sensex was up three hundred and seventy-six points or 0.64 per cent to end at 57,858, and Nifty was at 129 points, or 0.75 per cent greater at 17278. The indexes and market for bullion and foreign exchange were shut on Wednesday.
