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    Financial stocks help Sensex and Nifty50 recover most of day's losses

    Financial stocks help Sensex and Nifty50 recover most of day's losses

    Financial stocks help Sensex and Nifty50 recover most of day's losses
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    By Sandeep Singh   IST (Published)

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    The Sensex and the Nifty50 recovered much of their intraday losses after falling almost two percent amid a volatile session on Wednesday, as a worse-than-expected US inflation reading sent shockwaves across global markets.

    Indian equity benchmarks recovered most of their intraday losses in a volatile session on Wednesday, though a worse-than-expected US inflation reading sent shockwaves across global markets. Gains in financial shares aided the bounceback in the headline indices, but losses in in IT and oil & gas stocks kept stopped them from turning green.
    Globally, the sticky red-hot inflation in the world's largest economy dashed nascent hopes the Fed could scale back the pace and magnitude of its hikes in COVID-era interest rates.
    Both Sensex and Nifty50 dropped almost two percent in the first few minutes of the session before paring the losses. The 30-scrip index tanked as much as 1,154 points to 59,417.1 and the Nifty fell to as low as 17,771.2, down 298.9 points from its previous close.
    As many as 29 stocks in the Nifty50 basket finished the day in the red — in stark contrast to the start of the day when all the 50 stocks were below the flatline.
    Infosys, TCS, Tech Mahindra, HCL Tech and Larsen & Toubro were the top laggards. HDFC Life, SBI Life, Bharat Petroleum, Wipro and Apollo Hospitals — declining around 1.5 percent for the day each — were also among the blue-chip stocks that fell the most.
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    On the other hand, IndusInd, NTPC, SBI, PowerGrid, Kotak Mahindra Bank, Bajaj Finserv and Tata Steel — rising around 1-4 percent — were the top gainers.
    HDFC Bank, ICICI Bank and SBI led the fag-end recovery in both main indices.
    "The domestic market steadily recovered (intraday) as investors gained confidence to bottom fish thanks to the brighter prospects for the economy economy. The expectation that the Fed would become less hawkish, which had spurred the most recent global rally, was dashed by worse-than-anticipated US inflation data," said Vinod Nair, Head of Research at Geojit Financial Services.
    "The IT sector’s performance was bleak due to fears of a recession in the western markets," said Nair.
    Nischal Maheshwari of Centrum Broking, however, remains positive on the IT pack for two reasons: he believes margins may have bottomed out and attrition peaked at 27-28 percent.
    "We like all the largecap (IT) stocks out there: Tech Mahindra, HCL Tech and Infosys, in that order," Maheshwari, CEO-Institutional Equities and Advisory at Centrum, told CNBC-TV18.
    Official data showed wholesale inflation in India decelerated to 12.41 percent in August from 13.93 percent in the previous month, better than an estimated 13 percent by economists in a CNBC-TV18 poll.
    The rupee depreciated 0.4 percent to settle at 79.44 against the US dollar. It stands 0.8 percent above its lifetime low hit last month.
    Weakness in the rupee boosts the profitability of IT companies, which earn the lion's share of their revenue from foreign markets, and vice versa.
    Overall market breadth was largely neutral with a negative bias, as 1,633 stocks rose and 1,843 fell on BSE at the close.
    Global markets
    European shares suffered sharp losses in early hours on Wednesday, mirroring the trend in much of Asia, with the pan-European Stoxx 600 index down 1.2 percent at the last count. S&P 500 futures were flat, suggesting a muted start ahead on Wall Street.
    Check out our in-depth Market CoverageBusiness News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18CNBC Awaaz and CNBC Bajar Live on-the-go!
     
    Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
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