Rs 2.5 lakh crore wiped off! Sensex crashes 610 points, Nifty below 19,550

Indian shares fell on Thursday amid weakness in global equities markets, rise in crude oil prices and persistent FII selling. The BSE Sensex declined 610 points or 0.92%, while its NSE counterpart Nifty50 was below the 19,550 level.

Today's bloodbath resulted in the market capitalisation of all listed companies on BSE declining by Rs 2.55 lakh crore to Rs 317.05 lakh crore.

Among Sensex stocks, Tech Mahindra, Asian Paints and Wipro were the top laggards, falling 2-4%. Kotak Mahindra, Bajaj Finserv, Infosys, and ITC also declined. On the other hand, L&T, Axis Bank, Bharti Airtel, Power Grid, and SBI were in the green.


The broader market indices - Nifty Smallcap100 and Nifty Midcap100 plunged 0.4% and 0.1.3%, respectively.

Analysts stated crude prices, which rose 3% overnight will hurt India, the world's third-largest importer, which is also reeling under lower-than-expected monsoon rains, triggering inflation risks.

Expert Take
"The selling was broad-based, as investors are on alert given the rise of oil prices. If crude continues to stay above the 90 USD level, it will be a threat to inflation and boil the operational margins," said Vinod Nair, Head of Research at Geojit Financial Services.

"Globally, US GDP data and the FED chief speech will be watched carefully, which will set the future trend. Currently, the combination of higher interest rates and US bond yields are influencing FIIs to stay in the selling mode," Nair added.

Rupak De, Senior Technical analyst at LKP Securities, said, "The Nifty has experienced a significant correction as it was unable to maintain levels above 19,750. Looking ahead, the Nifty may decline towards 19,250, with immediate support situated at 19,450. Resistance is positioned at the higher end at 19,600."

Global Markets
Surging US Treasury yields and the dollar on fears that interest rates will remain higher for longer has been weighing on the global equity markets since the Federal Reserve struck a hawkish tone earlier in the month.

In Thursday's trade, the Hang Seng fell 1% and is close to a 10-month low. The mainland CSI300 fell 0.2%. Japan's Nikkei fell 1.8%.

Meanwhile, the pan-European STOXX 600 index slipped 0.2%, while Germany's DAX eased 0.2%.

Evergrande Effect
On Thursday, shares in cash-strapped developer China Evergrande were suspended in Hong Kong after a report that chairman Hui Ka Yan was under police watch.

Oil Extends Rally
Oil extended gains Thursday to a fresh one-year high and towards the $100-a-barrel mark on concerns about growing demand and waning supplies.

Brent crude futures were up 36 cents to $96.91 a barrel after rising to the highest since November earlier in the session.

US West Texas Intermediate crude futures (WTI) were up 24 cents at $93.92 a barrel, after rising above $95 earlier in the session for the first time since August 2022.

Currency Watch
The Indian rupee rose 3 paise to $83.19 against the US dollar on Thursday. The dollar index, which tracks the movement of the greenback against a basket of six major world currencies, declined 0.29% to 106.36 level.

(With inputs from agencies)