Markets bleed; Sensex tanks over 1000 pts, Nifty below 16k; Banking stocks worst hit amid US CPI risk

13 Jun 2022 , 09:44 AM

Indian markets were bleeding in red during Monday’s early trade due to weakening in global markets as US inflation rate in May 2022 touched a 40-year record high of 8.6%. A broad-based sell-off was witnessed across indices on exchanges BSE and NSE with Sensex diving to near 52,800-level and Nifty 50 even reaching near 15,800-level.

On the global front, Asian indices, Chinese stocks hit bleak milestones on growing investor concerns about the economic fallout, GDP and inflation data.

At around 9:45 AM, Sensex was trading at 52,923.42 nosediving by 1380.82 points or 2.54%. The index has touched an intraday low of 52,805.70.

Nifty 50 performed at 15,805.25 lower by 396.55 points or 2.45%. The benchmark has clocked the day’s low of 15,802.25.

On the broader markets, on BSE, Midcap and Smallcap dipped by nearly 530 points and 600 points respectively. Sensex Next 50 slipped around 890 points. Nifty VIX was trading in the green by surging over 8.6%.

In terms of sectoral indices, on NSE, all the indices were under deep red during early trade. The Banking sector was the worst hit with a drop of nearly 1,043 points with Auto, realty, financial stocks. The IT index dropped over 790 points. Meanwhile, the Realty, metals and media index shed between 3-4%.

Bears on Nifty50 index were Hindalco and Bajaj Finance dived over 4% each while Bajaj Finserv, IndusInd Bank and ICICI Bank plunged over 3.5% each. Stocks like Infosys, Tech Mahindra, Coal india, Tata Motors, L&T, fell between 3.5-3%.

On the global front, Asian indices have opened in the red today. Japanese Nikkei is down by 2.87%. Chinese stocks are under pressure as further lockdowns could prompt more inventory losses.

In addition, globally, markets mood has been soured due to tensions escalating over inflationary pressure as US inflation data reignited worries about even more aggressive Federal Reserve policy. Also, Beijing ‘explosive’ Covid outbreak added to the woes about global growh.