HomeMarket NewsSensex and Nifty50 drop 1% amid weakness in financial stocks as market enters RBI policy week

Sensex and Nifty50 drop 1% amid weakness in financial stocks as market enters RBI policy week

The Sensex and the Nifty50 extended losses after a gap-down opening on Monday, dragged by financial, oil & gas and auto shares though gains in healthcare stocks lent some support.

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By Sandeep Singh  September 26, 2022, 9:33:13 AM IST (Published)

2 Min Read
Sensex and Nifty50 drop 1% amid weakness in financial stocks as market enters RBI policy week
Indian equity benchmarks dropped on Monday as the focus on Dalal Street to the outcome of a key meeting of the RBI's rate-setting panel due this week. Globally, nervousness persisted among investors about steep hikes in COVID-era interest rates and hawkish commentary by central bankers amid fears of slowing economic growth.


Both headline indices fell around 1.5 percent in the first few minutes of trade after a gap-down opening. The Sensex dropped 816.7 points to 57,282.2 at the weakest level of the day so far, and the Nifty50 slid to as low as 17,073, down 254.4 points from its previous close.

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Forty five stocks in the Nifty50 basket started the week in the red. Reliance, Mahindra & Mahindra, Tata Motors, Hindalco and HDFC Bank were the top laggards. JSW Steel, Kotak Mahindra Bank, ICICI Bank, HDFC and Bajaj Finserv — falling up to 1.5 percent —were also among the blue-chip stocks that declined the most.

On the other hand, Tata Steel, Bharat Petroleum and Apollo Hospitals — inching up about 0.1 percent — were the top gainers.

All sectors succumbed to negative territory in early deals. Financial stocks were among the worst hit spaces on NSE.



"The global macro construct is not favourable for equity markets in the short run. The dollar index above 113 and the 10-year US yield at 3.73 percent are likely to aggravate FPI outflows, which have been gathering momentum in the past three days," said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

"The probability of a global recession is also increasing since the Fed continues to be ultra hawkish," he said.

Overall market breadth was sharply in favour of the bears, as 546 stocks rose and 2,153 fell on BSE.



Global markets
Equities in other Asian markets began the week in the red tracking sharp losses on Wall Street last Friday, with MSCI's broadest index of Asia Pacific shares outside Japan down 0.8 percent at the last count. Japan's Nikkei 225 was down 2.3 percent and China's Shanghai Composite flat.


S&P 500 futures were down 0.4 percent. On Friday, the three main US indices tanked 1.6-1.8 percent.


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