Sensex dives 1,155 points in early trade amid weak global markets

PTI, May 19, 2022, 10:23 AM IST

Equity benchmarks fell sharply on Thursday in line with an extremely weak trend in the global markets, with the Sensex plunging 1,154.78 points in early trade.

Persistent foreign fund outflows and a spurt in crude oil prices also dampened sentiment.

The 30-share BSE benchmark was trading 1,154.78 points lower at 53,053.75. The broader NSE Nifty tumbled 335.65 points to 15,904.65.

From the Sensex firms, Tech Mahindra, Bajaj Finserv, Infosys, Wipro, Tata Steel, HCL Technologies, Bajaj Finance and State Bank of India were the major laggards in early trade. ITC emerged as the only gainer from the 30-share pack.

Asian markets in Seoul, Shanghai, Hong Kong and Tokyo were also trading lower.

Stock exchanges in the US had ended significantly lower on Wednesday.

“US markets saw the worst sell-off since June 2020 as inflation fear looms,” said Mohit Nigam, Head – PMS, Hem Securities.

Meanwhile, international oil benchmark Brent crude gained 1.61 per cent to USD 110.87 per barrel.

Foreign institutional investors continued to offload shares worth Rs 1,254.64 crore on Wednesday, as per stock exchange data.

The BSE benchmark settled 109.94 points or 0.20 per cent lower at 54,208.53 on Wednesday. The NSE Nifty dipped 19 points or 0.12 per cent to finish at 16,240.30.

“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.