Markets

Sensex plunges over 500 points in early trade on weak global cues

Sensex plunges over 500 points in early trade on weak global cues
Benchmark indices opened trading on a weak note on Friday Sensex down more than 500 points in early trade amid weak global market trends. The outflow of foreign funds and fears of a recession in the global economy dampened investor sentiment.

The 30-share BSE benchmark fell 538.2 points to 59,395.81 in early trade. The Nifty fell 161.3 points to 17,716.10.

Among the Sensex pack, major laggards included Mahindra & Mahindra, Tech Mahindra, TCS, Wipro, HDFC, Infosys, Axis Bank, HCL Technologies and Power Grid.

IndusInd Bank, Bajaj Finance, Sun Pharma and Asian Paints were among the early gainers.

Asian markets in Seoul, Tokyo, Shanghai and Hong Kong traded lower.



The American markets it finished lower on Thursday.

“The market has started to show some signs of fatigue. Globally, the main concern now is that the Fed could overshoot the economy and end up raising rates too quickly, pushing the US economy into a sharp recession,” said chief VK Vijayakumar. Investment Strategist at Geojit Financial Services.

Soaring rates, bond yields and the dollar are negative for stocks, he added.

“In this challenging environment, it would be difficult for India to maintain separation from the global trend which has been the pattern in India recently.” FIIs they stopped their permanent shopping and turned into sellers, though it is not a trend yet,โ€ said Vijayakumar.

The BSE benchmark ended 412.96 points or 0.68 percent lower at 59,934.01 on Thursday. The Nifty fell 126.35 points, or 0.7 percent, to settle at 17,877.40.


Meanwhile, international benchmark Brent crude climbed 0.18 percent to $91 a barrel.

READ ALSO :   U.S. stock futures rallied as traders digested a mix of Fed-induced anxiety, strong GDP growth and solid Apple earnings

Foreign institutional investors on Thursday withdrew shares worth Rs 1,270.68 crore from the domestic market, according to data available on the BSE.

SEE ALSO:
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