Home Business Sensex Closes At A 52-Week Low Of 1,045 Points, Nifty Below 15,400

Sensex Closes At A 52-Week Low Of 1,045 Points, Nifty Below 15,400

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On Thursday, bears reinforced their grip on the market as the Sensex and Nifty both hit new 52-week lows. The benchmark indices fell for the fifth straight session, finishing 2% down.

The market recovered from early gains in early trade, followed favourable global cues, as the US Federal Reserve issued a 0.75 percentage point rate hike, as predicted. However, with widespread selling, the indices gave up their early gains and closed in the negative.

The BSE Sensex closed at 51,495.79, down 1,045.60 points or 1.99%, after hitting a new 52-week low of 51,425.48 earlier in the day. It reached a high of 53,142.50 during the day. The Nifty 50 index fell below 15,400 points, closing at 15,360.60, down 331.55 points or 2.11 percent from its 52-week high of 15,335.10. It reached a high of 15,863.15 during the day.

Over 2,700 Stocks Have Dropped In Value

The market breadth favoured the decliners, with 2,754 stocks falling on the BSE compared to 620 rising and 100 being unchanged. In addition, 317 stocks hit 52-week lows and 60 hit 52-week highs. Furthermore, 969 equities were locked in the upper circuit, compared to 144 stocks in the lower circuit.

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On the Nifty 50, only two equities — Nestle India and Britannia — finished in the green. The top losses were Hindalco, Tata Steel, ONGC, Coal India, and Tata Motors.

As reported by Business line, Investor mood has been weighed down by inflation fears and aggressive monetary policy tightening. The poor market attitude has been exacerbated by FII selling.

“Fed influence coupled with a delayed start to the southwest monsoon wreaked havoc as the Nifty caved in below 15,400 for the first time in the last one year,” said S Ranganathan, Head of Research at LKP Securities.

“As the market braces for more front-loaded measures by central banks to rein in spiralling inflation, the impact on consumer spending has put investors on edge.” Only a handful of FMCG companies had a green tick among front-liners today, reflecting the risk-off mentality on the street,” Ranganathan observed.

“Market is getting up to the reality that restrictive monetary policy is the lone card on the table hanging on rising inflation,” says Vinod Nair, Head of Research at Geojit Financial Services. As a result, the global economy will continue to stagnate, affecting corporate earnings, as evidenced by the m-o-m [month-on-month] drop in US retail sales.”

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Having worked in Entertainment, Technology, and Business for four years, Subhashree finds solace in technology, and more so in covering it.