Sensex tanks 410 points, Nifty ends below 17,750 on weak global trends

Mumbai, September 28

Equity benchmark Sensex tumbled by 410 points or 0.68 per cent on Tuesday due to heavy selling in IT, financials and telecom stocks in line with weak global trends as US bond yields rebounded.

After plunging over 1,032 points during the session, the 30-share BSE barometer pared some losses to end 410.28 points or 0.68 per cent lower at 59,667.60.

The broader Nifty of the National Stock Exchange declined by 106.50 points or 0.60 per cent to close at 17,748.60, dragged down by Bharti Airtel and Tech Mahindra. As many 32 of Nifty constituents declined while 18 advanced.

Bharti Airtel was the top loser in the Sensex pack, shedding nearly 4 per cent, followed by Tech Mahindra, Bajaj Finance, Bajaj Finserv, HCL Tech and Infosys.

However, gains in Reliance Industries, Kotak Bank and PowerGrid restricted the losses in the index. NTPC, Sun Pharma, Titan, and Dr Reddy’s were also among the gainers.

“Following negative global cues and profit-booking in IT and realty sectors, the domestic market hit rough weather, however, it witnessed a rebound towards the closing,” said Vinod Nair, Head of Research at Geojit Financial Services.

A rise in US bond yields and crude oil price along with the Chinese energy crisis acted as key headwinds to the ongoing rally in the global market, he added.

A power shortage in some parts of China led to temporary closure of factories under a measure to meet energy use targets. Analysts feared that the shut down could have global impact, including on supplies needed for manufacturing throughout Asia ahead of the year-end shopping season.

Vikas Jain, Senior Research Analyst at Reliance Securities said, “Domestic markets opened flat to negative as US stocks ended mostly lower, weighed down by weakness in tech, while government bond yields rose to the highest level in nearly three months after durable goods orders topped forecasts.” The 10-year US Treasury yield climbed 3 basis points to 1.49%, the highest since June.

NIFTY50 traded volatile with rollover moves ahead of the monthly derivatives expiry, as the broader markets slump on profit selling and the breadth turned negative, Jain said.

Among sectoral indices, BSE Realty dropped the most by 3.02 per cent, followed by Teck (2.12 per cent) and Telecom (1.98 per cent). However, utilities, power, oil and gas, energy and metal indices ended with gains.

Broader midcap and smallcap indices fell up to 0.71 per cent.

Elsewhere in Asia, Japan’s benchmark Nikkei 225 lost 0.2 per cent, South Korea’s Kospi declined 1.1% and Australia’s S&P/ASX 200 fell 1.5 per cent following losses in US stocks. Bourses in Shanghai and Hong Kong, however, ended with gains.

Stock exchanges in Europe were also trading on a negative note in mid-session deals. Meanwhile, international oil benchmark Brent crude rose 0.89 per cent to USD 79.42 per barrel. PTI