Sensex has dropped over 1,450 points, and Nifty is trading below 17,100, IT Stocks Drag

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In afternoon trade on Monday, Indian equity benchmarks fell dramatically, pulled down by intense selling pressure in information technology (IT) stocks.

On the stock-specific front, Infosys was the biggest loser, falling 7.84 percent.

In afternoon trade on Monday, Indian equity benchmarks fell dramatically, pulled down by intense selling pressure in information technology (IT) sectors. Investor confidence has been harmed by the ongoing Russia-Ukraine crisis and growing inflation. In addition, a spike in crude oil prices kept investors on the edge of their seats.

Trends on the Singapore Exchange’s Nifty Futures (SGX Nifty) also pointed to a gap-down start for the domestic indices during the earnings season.

In March, the wholesale price index (WPI) inflation rate increased to 14.55 percent. For the 12th month in a row, the figure has remained in double digits. Retail (consumer price-based) inflation touched a 17-month high of 6.95 percent in March, according to official figures released last week.

Brent futures rose $1.50, or 1.3 percent, to $113.20 a barrel today, while U.S. West Texas Intermediate futures increased 98 cents, or 0.9 percent, to $107.93 a barrel, owing to tighter global supply worries.

In afternoon trade, the 30-share BSE Sensex was down 1,467 points, or 2.51%, to 56,872, while the wider NSE Nifty fell 391 points, or 2.24 percent, to 17,085.

BSE-listed companies’ market capitalization fell from 4.52 lakh crore to 267.50 lakh crore.

Mid- and small-cap stocks were down 1.82 percent and 1.79 percent, respectively, on the Nifty Midcap 100.

The National Stock Exchange’s 15 sector indicators were trading in the red, with 14 of them. Nifty IT and Nifty Financial Services fell as high as 4.19 percent and 2.60 percent, respectively, underperforming the index.

On a stock-by-stock basis, Infosys was the biggest loser, falling 7.84 percent to 1,609.75. Among the losers were Tech Mahindra, the HDFC twins (HDFC and HDFC Bank), and Apollo Hospitals.

On the BSE, the total market breadth was negative, with 1,191 shares rising and 2,250 falling.

Infosys, TechM, HDFC twins, Wipro, TCS, HCL Tech, Bajaj Finserv, and Kotak Mahindra Bank were among the top laggards on the 30-share BSE index.

NTPC, Tata Steel, Nestle India, Hindustan Unilever, M&M, and Maruti Suzuki, on the other hand, were trading in the green. Tata Steel’s stock jumped 1.61 percent after its board of directors declared on May 3 that it would explore a proposal to split the company’s equity.

On Wednesday, the Sensex fell 237 points, or 0.41 percent, to close at 58,339, while the Nifty fell 55 points, or 0.31 percent, to 17,476. After a four-day suspension, the indices resumed today.


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