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    Bloodbath on D-St! Sensex crashes 900 pts; investors lose Rs 5.8 lakh crore

    Synopsis

    "There is risk-off in global equity markets triggered by a combination of economics and geopolitics. The Israel-Hamas conflict continues to be a major headwind for markets. If the conflict lingers for long it has the potential to impact global growth, too, when the global economy is already in the midst of a slowdown," said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

    Sensex plunges 900 points, Nifty below 18,900; Adani group stocks tank up to 7%
    Benchmark equity indices traded lower for the sixth consecutive session on Thursday, tracking weakness in global equities due to concerns over US Treasury yields and the Middle East conflict.

    The BSE Sensex was trading 900 points lower, below 63,200. Nifty50 slipped below 18,900 for the first time since June 28.

    The market capitalisation of all listed companies on BSE dropped by 5.78 lakh crore to Rs 303.44 lakh crore.

    Among the Sensex stocks, Tech Mahindra and M&M fell around 2.3% each. Tata Motors, Bajaj Finserv, Bajaj Finance, Asian Paints, and Tata Steel also opened lower. Barring Axis Bank, all constituents traded with cuts.

    Jubilant FoodWorks shares fell over 5% after the firm reported a 39.5% year-on-year (YoY) drop in its standalone September quarter profit at Rs 72.1 crore. It was Rs 119.2 crore in the year-ago period.

    Sonata Software shares rose over 4% after the firm reported a 10% YoY rise in net profit at Rs 124.2 crore for the second quarter that ended September 30, 2023.

    Experts Take
    "There is risk-off in global equity markets triggered by a combination of economics and geopolitics. The Israel-Hamas conflict continues to be a major headwind for markets. If the conflict lingers for long it has the potential to impact global growth, too, when the global economy is already in the midst of a slowdown," said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

    "In the near term, however, the strongest headwind for the market is the stubbornly high US bond yields. With the 10-year bond yield at near 5% FPIs are likely to be in the sell mode," Vijayakumar added.

    Ameya Ranadive, Research Analyst at Choice Broking, said, "While there exists a potential for a minor upside rebound in the vicinity of 19,100-19,000 levels, a breach of the 19,000 mark could potentially pave the way for a further downturn towards 18,800-18,650 levels in the near future."

    Asian Markets
    US stocks tumbled on Wednesday as Alphabet shares slid after disappointing earnings and as US Treasury yields rose, reviving fears that interest rates could stay higher for longer.

    Broader Asian markets also fell, with China's blue-chip index opening 0.51% lower and Japan's Nikkei declining over 2%.

    FII/ DII Tracker
    Foreign institutional investors (FIIs) sold Rs 4,237 crore worth of shares on a net basis on Wednesday, while domestic institutional investors (DIIs) bought a net Rs 3,569 crore of shares.

    Oil Impact

    Brent oil rose above $90 per barrel on Wednesday and was hovering around those levels in Asia hours on Thursday, after Israel Prime Minister Benjamin Netanyahu said the country was preparing for a ground invasion of Gaza. Higher oil prices are a negative for importers of the commodity like India.

    Brent crude futures slid 21 cents, or 0.23%, to $89.92 a barrel. US West Texas Intermediate (WTI) crude was at $85.31 a barrel, down 9 cents, or 0.11%.

    Currency Watch

    The Indian rupee fell 3 paise to $83.20 against the US dollar in early trade. The dollar index, which tracks the movement of the greenback against a basket of six major world currencies, surged 0.20% to 106.74 level.

    (With inputs from agencies)

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    (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)




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    (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2024 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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