Bloodbath on D-St: Recession, rate hike fears wreck stocks

Mumbai, September 16

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Equity benchmarks spiralled lower for the third session on the trot on Friday, in lockstep with a sell-off in overseas markets as investors fretted over the global economy slipping into a recession amid rate hikes by central banks. A weak rupee and foreign fund outflows added to the woes, traders said.

Investors poorer by Rs 6.18 lakh cr

• Investors have become poorer by over Rs 6.18 lakh crore as markets took a heavy beating on Friday
• In three days, investors’ wealth has tumbled by over Rs 7 lakh crore
• All the sectoral indices ended in the negative zone, with realty tumbling 3.53%, followed by IT (3.37%) and basic materials (3.05%)

SENSEX TANKS

1,093.22 POINTS

RUPEE FALLS TO 79.78 VS USD

CLOSES AT 58,840.79

• The NSE Nifty declined 346.55 points to close at 17,530.85
• UltraTech was the top loser, followed by Tech Mahindra, Infosys, M&M, Wipro, & TCS

The Sensex tanked 1,093.22 points or 1.82% to settle at 58,840.79. During the day, it tumbled 1,246.84 points or 2% to 58,687.17. Similarly, the NSE Nifty declined 346.55 points or 1.94% to close at 17,530.85.

UltraTech Cement was the top laggard in the Sensex pack, slumping 4.51%, followed by Tech Mahindra, Infosys, M&M, Wipro, TCS and Nestle India. IndusInd Bank emerged as the sole gainer, spurting 2.63%.

“With persistent bearish pressure from global stocks amid rising yields and dollar index, the domestic market surrendered to the global trend despite its strong decoupling scenario and encouraging macroeconomic data.

“Post the release of US inflation data, which showcased a MoM increase in inflation, the global market has been pricing in the likelihood of a more aggressive policy response from the Fed,” said Vinod Nair, Head of Research, Geojit Financial Services.

“Markets witnessed a sharp sell-off on the final day of the week and lost closer to 2%. The selling pressure was widespread wherein IT, realty and auto pack were among the top losers,” said Ajit Mishra, VP, Religare Broking Ltd. — PTI

World Bank Fears recession in 2023

As central banks across the world are simultaneously hiking interest rates in response to inflation, the world may be edging toward a global recession in 2023, the World Bank warned.