Sensex tanks 410 points, Nifty ends below 17,750
Equity benchmark Sensex tumbled 410 points or 0.68% 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% lower at 59,667.60.
Nifty declined by 106.50 points to close at 17,748.60
The broader Nifty of the National Stock Exchange declined by 106.50 points or 0.60% to close at 17,748.60, dragged down by Bharti Airtel and Tech Mahindra. As many as 32 of Nifty constituents declined while 18 advanced.
Here are the top gainers and losers
Notably, Bharti Airtel was the top loser in the Sensex pack, shedding nearly four percent, 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.
Domestic market witnessed rebound toward the closing: Expert
"Following negative global cues and profit-booking in IT and realty sectors, the domestic market hit rough weather, however, it witnessed a rebound toward the closing," said Vinod Nair, Head of Research at Geojit Financial Services. "A rise in US bond yields and crude oil price and the Chinese energy crisis acted as key headwinds to the ongoing rally in the global market," he added.
Temporary closure of factories in China could have global impact
Power shortage in some parts of China led to the temporary closure of factories under a measure to meet energy use targets. Analysts feared that shutdown could have a global impact, including on supplies needed for manufacturing throughout Asia ahead of the year-end shopping season.
Ten-year US treasury yield climbed three basis points to 1.49%
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 three basis points to 1.49%, the highest since June.
BSE Realty dropped the most by 3.02% among sectoral indices
NIFTY50 traded volatile with rollover moves ahead of the monthly derivatives expiry, as the broader markets slumped on profit selling, Jain said. Among sectoral indices, BSE Realty dropped the most by 3.02%, followed by Teck (2.12%) and Telecom (1.98%). However, utilities, power, oil and gas, energy, and metal indices ended with gains. Broader midcap and smallcap indices fell up to 0.71%
Brent crude rose 0.89% to $79.42 per barrel
Elsewhere in Asia, Japan's benchmark Nikkei 225 lost 0.2%, South Korea's Kospi declined 1.1% and Australia's S&P/ASX 200 fell 1.5% 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% to $79.42 per barrel.
