The NSE’s Nifty50, meanwhile, shut shop at 18,857, falling 265 points or 1.41 per cent. It hit an intraday low of 18,843.
26 of the 30 Sensex stocks and 46 of the 50 Nifty stocks nursed losses led by M&M, Bajaj Finance, UPL, Bajaj Finserv, Tech M, Nestle India, Asian Paints, Titan Company, BPCL, Adani Enterprises, HDFC Bank, Kotak Bank, ONGC, Apollo Hospitals, SBI, Dr Reddy’s Labs, Bharti Airtel, HDFC Life, Coal India, and Bajaj Auto. All these stocks cracked between 1.5 per cent and 4 per cent.
In the broader market, the BSE MidCap index shed 0.94 per cent, and the BSE SmallCap index fell 0.19 per cent.
Sectorally, the Nifty Financial Services index fell the most in this broad-based selling. The index dropped 1.5 per cent, followed by the Nifty Metal index (down 1.5 per cent), and the Nifty Private Bank index (down 1.27 per cent).
V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said: “There is risk-off in global equity markets triggered by a combination of economics and geopolitics. The Israel-Hamas conflict continues to be a major headwind for markets. If the conflict lingers for long, it has the potential to impact global growth, too, when the global economy is already in the midst of a slowdown.”
“In the near-term, however, the strongest headwind for the market is the stubbornly high US bond yields. With the 10-year bond yield at near 5%, FPIs are likely to be in the sell mode,” he added.
“Sectors like banking and IT which constitute the largest segments of the AUM of FPIs are likely to be under pressure. This will provide opportunities for long-term investors to buy quality stocks, particularly in banking, at attractive rates,” Vijaykumar explained.
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