Nifty closes below 23,850, Sensex plunges 893 points amid IT selloff and global market weakness
Mumbai, June 23
The domestic equity markets witnessed sharp selling pressure on Tuesday, with both benchmark indices closing more than 1 per cent lower amid a broad-based technology selloff, weakness in global markets and growing concerns over further monetary tightening in the United States.
The Nifty 50 index closed at 23,824.10, down 278.80 points or 1.16 per cent, while the BSE Sensex settled at 76,200.68, losing 893.39 points or 1.16 per cent.
Market experts said the decline was led by technology stocks, while a weaker rupee and concerns over global interest rates further dampened investor sentiment.
Ponmudi R, CEO of Enrich Money, 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."
Sector-wise, almost all major indices on the National Stock Exchange (NSE) ended in negative territory. Nifty IT emerged as one of the worst-performing sectors, falling 2.23 per cent. Nifty Media also witnessed heavy selling pressure and declined 3.22 per cent.
Nifty PSU Bank fell 1.97 per cent, while Nifty Auto declined 0.77 per cent and Nifty FMCG slipped 0.60 per cent.
The only sector that managed to end in positive territory was Nifty Pharma, which gained 0.92 per cent.
Despite the weakness in equity markets, crude oil prices continued to decline. Brent crude was trading at USD 77.51 per barrel at the time of filing this report.
According to market participants, investors were also booking profits after the recent rally, leading to increased volatility in the market.
Riyank Arora, Associate Vice President - HNI & Derivatives at Hedged.in, said, "The sharp decline in benchmark indices suggests profit booking and a rise in near-term caution among market participants. Market sentiment may remain volatile over the next few sessions, with traders closely monitoring key support zones. While the broader long-term trend remains intact, the near-term structure has weakened."
The weakness was also reflected across most major Asian markets on Tuesday. Except for Singapore's Straits Times index, which gained 0.03 per cent, all major regional markets closed lower.
Japan's Nikkei 225 index declined 2.98 per cent to close at 70,260. Hong Kong's Hang Seng index fell 1.79 per cent to 23,351. Taiwan's weighted index slipped 1.36 per cent to close at 47,100. South Korea's KOSPI index witnessed the highest selling pressure among major Asian markets, falling more than 11 per cent to 8,203.
— ANI
Reader Comments
This is exactly why I stick to my SIPs no matter what the market does. 893 points down in a single day? That's scary if you're a short-term trader. For long-term investors like me, it's just noise. Pharma held up well though! Always keep some defensive stocks.
Jab tak Modi sarkaar hai, market upar jayega! 😂 Kidding aside, this US Fed nonsense is affecting every emerging market. We need to diversify away from IT stocks and look at defence, manufacturing, and renewable energy. That's where the real growth will be next 5 years.
IT selloff was overdue. TCS, Infy, Wipro - they had rallied too much on AI hype. Meanwhile, pharma showing strength despite global headwinds is interesting. Maybe time to rotate into healthcare and PSU banks? But honestly, a 2% IT decline is nothing compared to what happened in Japan (-11%!)
I've been tracking Asian markets closely and this is synchronized selling. The KOSPI down 11% is brutal. But India's Nifty only fell 1.16% which shows relative strength. Still, with the rupee weakening and US rates likely staying higher, we could see more volatility. Cautious optimism from here.
Great! My new year resolution of staying away from F&O just got validated. Samay pe humara paisa barbaad karne se acha hai ki FD karo ya gold lelo. At least sone ka rate to girta nahi hai
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