Sensex skids for 2nd day as inflation worries haunt global equities

PTI | Mumbai | Updated: 13-05-2021 09:37 IST | Created: 12-05-2021 17:12 IST
Sensex skids for 2nd day as inflation worries haunt global equities
Representative Image Image Credit: ANI
  • Country:
  • India

The BSE Sensex spiraled lower for the second straight session on Wednesday, weighed by heavy selling in banking and finance stocks, as global equities extended their losses on concerns that soaring commodity prices will trigger earlier-than-expected rate hikes.

The 30-share BSE benchmark slumped 471.01 points or 0.96 percent to finish at 48,690.80.

Similarly, the broader NSE Nifty tumbled 154.25 points or 1.04 percent to 14,696.50.

IndusInd Bank was the top laggard on the Sensex chart, shedding 3.35 percent, followed by HUL, ONGC, ICICI Bank, Axis Bank, Kotak Bank, M&M, UltraTech Cement, and Tech Mahindra.

On the other hand, Titan, Maruti, PowerGrid, SBI, NTPC, Dr. Reddy's, and L&T managed to close in the green, climbing up to 1.31 percent.

''Indian indices extended its losses due to concerns over hike in global interest rates and bond yield due to rising commodity prices and inflationary pressure,'' said Vinod Nair, Head of Research at Geojit Financial Services. International commodity prices will have to stabilize to provide sustenance in the equity market, he added. Binod Modi, Head Strategy at Reliance Securities, said daily COVID-19 caseload trending below 3.5 lakh for the last two days offers comfort, but elevated positivity rate and rising cases in the hinterlands are expected to weigh on investor sentiment. India saw a record 4,205 COVID-19 fatalities in a day, taking the death toll to 2,54,197, while 3,48,421 new coronavirus infections were reported, according to the Union Health Ministry data updated on Wednesday. Sector-wise, BSE metal, basic materials, banks, oil and gas, energy, and finance indices tanked up to 3.22 percent, while the auto index settled with gains. Broader BSE midcap and smallcap indices fell up to 0.90 percent. On the front of the global market, Wall Street continued its slide as investors fretted over soaring commodity prices and their impact on the Federal Reserve's monetary policy.

Elsewhere in Asia, bourses in Shanghai and Hong Kong ended on a positive note, while Tokyo and Seoul were in the red.

Stock exchanges in Europe were trading on a mixed note in mid-session deals, boosted by strong corporate earnings.

Meanwhile, international oil benchmark Brent crude was trading 0.50 percent higher at USD 68.88 per barrel. The rupee declined by 8 paise to close at 73.42 against the US dollar. Foreign institutional investors (FIIs) remained net sellers in the capital markets, as they pulled out Rs 336.00 crore on Tuesday, as per provisional data.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

Give Feedback