The selling pressure was visible across the board as all 11 sectors compiled by the National Stock Exchange were losing business.
The Indian equity benchmark continues to see a loss of fast selling pressure in other global markets, as a yields in the global bond markets sent yields and investors fearing heavy losses could trigger unsold sales in other assets is. The Sensex fell 1,848 points or 3.6 percent and the Nifty 50 index fell 3.6 percent to a low of 14,554.
By 12:57 pm, the Sensex fell 1,619 points or 3.2 per cent to 49,419 and the Nifty closed 3.3 per cent or 502 points down at 14,595.
“Low interest rates raised the rally’s form value to 7,500 and the Nifty has doubled from those levels in the last 12 months. Now signs of interest rate changes are visible, which means liquidity will dry up and easy money. Will not last. The Nifty may go below 13,900. The Nifty is trading in the near term given the high valuation, “AK Prabhakar, head of research, IDBI Capital, told NDTV.
In a sign the depressed mood would change across markets, European and American stock futures were a sea of red. Eurostoxx 50 futures for Germany’s DAX fell 1.7 percent and London’s FTSE futures fell 1.3 percent.
MSCI’s largest index of Asia-Pacific shares outside Japan has slipped more than 3 percent to a one-month low since May 2020, its one-day percentage loss.
Mid and small cap stocks also saw selling pressure as the Nifty Midcap 100 index fell 2 percent and the Nifty Smallcap 100 index fell 1.6 percent.
All the shares in the Nifty 50 basket, except Sun Pharma, were trading at ICICI Bank’s decline of 5.2 per cent. Kotak Mahindra Bank, Axis Bank, Mahindra & Mahindra, Bajaj Finserv, JSW Steel, GAIL India, HDFC Bank, IndusInd Bank, Bajaj Finance, HDFC, Power Grid, Hero MotoCorp, Larsen & Toubro, ONGC, Adani Ports, Tata Steel. State Bank of India also fell between 3-5 percent.
The breadth of the overall market was extremely negative as 1,913 stocks declined while 852 were on the BSE.