Bloody Monday! Sensex sheds 1000 pts, Nifty 50 drops 350 pts; IT stocks worst hit

29 Aug 2022 , 09:42 AM

Domestic markets opened in the deep red on Monday morning tracking weak global markets as investors fret about the impact of increased interest rates on global growth and react to the latest decline in Foreign Exchange reserves. In the opening bell, the S&P BSE Sensex was down more than 1200 points or 2%, while the Nifty 50 gave up 17,200 as the IT stocks were among the top laggards. Globally, US markets ended deep in the red as the investors reacted negatively to remarks by Fed Chairman Jerome Powell.

In terms of the sectoral front, all the sectoral indices are trading in the red with a steep fall where IT and banks doing the most damage. Meanwhile, India’s Volatility Index ((VIX) skyrocketed by over 15% on Monday’s trade.

Currently at around 9:41 AM, the BSE Sensex was trading at 57,729.21 nosediving by 1104.66 points or 1.88% and the NSE Nifty was 17,204.50 down 354.40 points or 2.02%.

At this hour, there were no NSE gainers while on the other hand, losers on the Nifty 50 index were – Tech Mahindra slumped 5.5%, Infosys dropped 4.4%, HCL Tech, TCS, Hindalco were in the negative zone, tumbling around 4% each.

Other stocks like Wipro, JSW Steel, Tata Motors, UPL, L&T, HDFC also dragged.

In terms of sectoral indices, Nifty IT was the top bear nosediving by more than 1000 points, while Bank Nifty contracted by 940 points.

On the Wall Street, US markets witnessed biggest fall in over 4 months as Federal Reserve Chairman 8 minutes speech rattles markets with Dow Jones falling 1000 points while Nasdaq falls almost 500.

On the Asian front, the markets opened in the red as the Japanese ‘Nikkei’ traded down over 800 points in early trade as the Yen hit its lowest level to US$ in over 15 years. Taiwan markets were down over 400 points in sync with the sell off in Nasdaq & technology stocks.

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