The Sensex plummeted 1,154.78 points in early trade on Thursday, following an exceedingly dismal trend in global markets. Foreign investment outflows and a surge in crude oil prices have also affected optimism.
The 30-share BSE index was down 1,154.78 points at 53,053.75. The NSE Nifty fell 335.65 points to 15,904.65.
Tech Mahindra, Bajaj Finserv, Infosys, Wipro, Tata Steel, HCL Technologies, Bajaj Finance, and State Bank of India were the main laggards in early trade among Sensex companies. ITC was the only gainer among the 30 stocks in the group.
On Wednesday, stock markets in the United States finished considerably down.
According to stock exchange statistics, foreign institutional investors continued to sell shares worth Rs 1,254.64 crore on Wednesday.
On Wednesday, the BSE benchmark fell 109.94 points, or 0.20%, to 54,208.53. The NSE Nifty finished at 16,240.30, down 19 points or 0.12%.
“Deteriorating macro sentiments such as soaring inflation, recession fears, and the prospect of the Federal Reserve getting even more hawkish will continue to keep benchmarks on the edge. Another main reason for the pessimism can be attributed to relentless selling from the FII camp,” said Prashanth Tapse, Vice President (Research), Mehta Equities Ltd.
Meanwhile, Brent crude, the international oil benchmark, rose 1.61% to USD 110.87 a barrel. The rupee fell 12 paise to 77.74 against the US dollar in early trade on Thursday, pressured down by a flat trend in domestic equities and continued outflows of foreign funds.