Markets in a bloodbath; Sensex tanks 800 pts, Nifty 50 around 16,200; RIL in focus post Q4

9 May 2022 , 09:43 AM

Indian markets opened on a negative note tracking weakness in global markets as over concerns about rising inflation, interest rates hikes as there was an intense selling pressure by Foreign Institutional Investors (FIIs). Investors are also tracking news flow on the Russia-Ukraine invasion closely which makes market nervous. However, the onset of the corporate earnings season, macro data, FII flows, crude oil and IPOs will be at the centre stage to monitor market developments this week.

At home, selloff in banking, auto, financial, IT, consumer durables, pharma and metal stocks pushed benchmarks Sensex and Nifty 50 off the cliff where India Volatility Index surged by 4.5% at 22.21 points.

At around 09:40 AM, Sensex was trading at 53,946.38 below 889 points or 1.62%. Nifty 50 performed at 16,180.60 lower by 230.65 points or 1.41%.

On Nifty 50, all the stocks are trading in the red with top Nifty underperformers are: Tech Mahindra, Hindalco, JSW Steel, Tata Steel and Tata Motors plunged between 2-4.5%.

In terms of sectoral indices, Bank Nifty shed more than 500 points or 1.5%. Nifty Consumer Durables also tumbled by 450 points. Nifty Metals and IT dragged benchmark Nifty 50 and other sectoral indices by plunging at least 160 and 150 points respectively. 

The companies that are set to announce their Q4 result today are: UPL, PVR, Godrej Agrovet, Infibeam Avenues, Dalmia Bharat, Gujarat Narmada Valley Fertilizers & Chemicals, 3i Infotech, Aarti Drugs, BASF India, Borosil, Central Bank of India, CMS Info Systems, Craftsman Automation, Vedant Fashions, Suven Pharmaceuticals, VST Tillers Tractors, ISMT, Mold-Tek Packaging, Visaka Industries, and Vishwaraj Sugar Industries

Further, Reliance Industries tumbled more than 2.5% in the early trade on Wednesday post Q4 earnings. The oil-telecom-to-retail major reported 20.2% yoy growth in consolidated profit at Rs18,021 crore in the quarter ended March 2022 led by strong operating income as well as topline. 

On the global front, Bond yields hit 2018 highs at 3.20% as strong job numbers indicate strength in the economy, which may prompt the Federal Reserve to raise rates sharply.