Sensex declines 380 points, Nifty falls by 108 points in early trade

#Asian #BSE #CrudeOil

The Sensex was down 380.53 points, or 0.66%, at 57,245.38 and the Nifty fell 108.25 points, or 0.63%, to 17,015.35
The rupee began at 82.30 versus the US dollar before rising to 82.29
Brent crude was trading 0.04% down at USD 92.41 a barrel

Written By:Yash

Updated: October 12 2022 07:51:06 PM ET

The Sensex slid more than 175 points in opening trade on Thursday, mirroring volatility in IT, banking, and financial equities on negative macroeconomic cues. In addition, persistent outflows of foreign money as well as a decline in global stocks, according to traders, dampened investor sentiment.

In early trade, the Sensex was down 380.53 points, or 0.66%, at 57,245.38. The Nifty fell 108.25 points, or 0.63%, to 17,015.35.

Also Read| India industrial output shrinks 0.8% in August

Wipro led the Sensex pack in losses, falling 5.20%, followed by HDFC twins, TCS, Bajaj Finserv, UltraTech Cement, and Kotak Bank. Wipro Limited reported a 9.3% decline in net profit for the September quarter, owing to higher staff expenditures and reduced non-US profits.

Also Read| FOMC minutes: US Fed officials worried about persistently high inflation

HCL Tech, on the other hand, rose 3.50% after reporting a 7% year-on-year increase in consolidated net profit to Rs 3,489 crore for the September quarter. M&M, Tata Steel, Dr Reddy’s, IndusInd Bank, and NTPC all benefited.

Higher food prices boosted retail inflation to a five-month high of 7.4%, while industrial production declined for the first time in 18 months, giving a double blow to India’s economic recovery.

Also Read| Global markets react to US FOMC meeting minutes

The rise in consumer price index (CPI)-based inflation for the second month in a row will increase pressure on the Reserve Bank of India (RBI) to hike interest rates again to curb excessive prices.

The Sensex rose 478.59 points, or 0.84%, to 57,625.91 in the previous session. Similarly, the Nifty recaptured the 17,100 mark, rising 140.05 points, or 0.82%, to settle at 17,123.60.

Foreign institutional investors (FIIs) have sold shares worth a net of Rs 542.36 crore, whereas domestic institutional investors (DIIs) purchased shares worth a net of Rs 85.32 crore on October 12, as per provisional data available on the NSE.

Also Read| Stocks to watch on Thursday, October 13, 2022

Asian markets are trading mostly in red with Nikkei 225 declining 130.88 points or 0.50% to 26,265.95, Straits Times falling 36.54 points or 1.19% to 3,046.65, Hang Seng slipping 165.93 points or 0.99% to 16,535.10, Taiwan Weighted lost 163.57 points or 1.25% to 12,917.67 and KOSPI was down by 25.18 points or 1.14% to 2,177.29. On the other hand, Jakarta Composite rose 8.30 points or 0.12% to 6,917.51 and Shanghai Composite was up by 4.92 points or 0.16% to 3,030.43.

Also Read| Behind India’s runaway inflation: Mounting crude, moody monsoons

Stocks on Wall Street concluded significantly lower on Wednesday. The S&P 500 fell 11.81 points, or 0.3%, to 3,577.03. The Dow Jones Industrial Average fell 28.34 points, or 0.1%, to 29,210.85. The Nasdaq fell 9.09 points, or 0.1%, to 10,417.10. The Russell 2000 index of smaller companies fell 5.15 points, or 0.3%, to 1,687.76.

Also Read| India retail inflation rises to 7.41% in September

Brent crude, the international standard for crude oil, was trading 0.04% down at USD 92.41 a barrel. The rupee began at 82.30 versus the US dollar before rising to 82.29, a 4-paise increase from the previous day, reflecting a subdued trend in local stocks despite negative domestic macroeconomic data.