Indian benchmark indices ended on a negative note in the highly volatile session on Tuesday. The BSE Sensex recouped early morning losses and rallied to a high of 54,857 only to fall back to the low of the day at 54,226 at the fag end of the trade. The BSE benchmark index finally ended 106 points lower at 54,365. The NSE Nifty was down 62 points at 16,240. Among the Sensex 30 stocks, Tata Steel slumped over 7 per cent to Rs 1,162. Metal as a sector has witnessed strong selling pressure after the Metal index hit a historic high in April 2022. Click here for a chart check on select metal stocks.
Sun Pharma, NTPC, Titan, Reliance Industries, and Bajaj Finance were the other major Sensex losers. On the positive side, Hindustan Unilever gained 3 per cent. Asian Paints, IndusInd Bank, and UltraTech Cement were the other major gainers, up over 2 per cent each.
The broader market ended with heavy losses. The BSE Midcap and Smallcap indices were down over 2 per cent each. The overall breadth too was extremely negative – with nearly three declining stocks for every advancing share on the BSE.
Sectorally, the BSE Metal index slumped 5.6 per cent. The Power index tumbled over 4 per cent. The Power, Energy and Realty indices were down 2-3 per cent each.
Shares of debutant Rainbow Children’s Medicare (RCML) listed at Rs 506 on the BSE – a 7 per cent discount when compared with its issue price of Rs 542 per share. The stock touched a high and low of Rs 519.35 and Rs 421, respectively, before ending Day 1 at Rs 450 a huge 17 per cent discount to its issue price.
Vinod Nair, Head of Research at Geojit Financial Services, said: “The resistance of the Indian market has started to move in tandem with the world market. The support from DII & retail investors is reducing after the heavy selloff unsteadying their optimism. A fall in financial liquidity is expected to slow down the economy and the pricing of equities. Oil prices are declining further on worries of Chinese lockdown, rising dollar, and risk of recession. Metal stocks are losing its shine as the sector’s outlook is turning negative due to persisting margin pressures.”
Global Cues
Asian shares tumbled to their lowest in nearly two years on Tuesday as investors shed riskier assets on worries about higher interest rates and their impact on economic growth, while the dollar held near 20-year highs. MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.8%, falling for a seventh straight session and extending declines to 17 per cent so far this year. The Nikkei lost 0.9 per cent, Australian shares shed 2.5 per cent and Korean stocks lost 2 per cent.
Hong Kong’s benchmark share index returned from a one-day holiday sharply lower on Tuesday, slumping more than 4 per cent as worries over higher interest rates and slowing economic growth sapped investor sentiment. The Hang Seng index fell as much as 4.11 per cent in early trade, dragged lower by index heavyweights Alibaba Group Holding , Meituan and Tencent Holdings Ltd, which slumped between 4 per cent and 7 per cent.
The S&P 500 ended below 4,000 for the first time since late March 2021 and the Nasdaq dropped more than 4 per cent on Monday in a selloff led by mega-cap growth shares as investors grew more concerned about rising interest rates. The Dow Jones Industrial Average fell 653.67 points, or 1.99per cent, to 32,245.7, while the S&P 500 lost 132.1 points, or 3.20per cent, to 3,991.24, its lowest close since March 31, 2021. The Nasdaq Composite dropped 521.41 points, or 4.29 per cent, to 11,623.25.
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