Markets nosedive amid weak global cues; Banking, IT, Auto, Consumer Durables worst hit; Pharma stocks outperform

7 Apr 2022 , 09:38 AM

Indian markets opened on a negative note tracking weakness in global markets as US Federal Reserve has planned to prune balance sheet by $1.1 trillion a year due to inflationary pressure which continues to mount the investors sentiments.

At home, selloff in banking, auto, financial, IT, consumer durables and metal stocks pushed benchmarks Sensex and Nifty 50 off the cliff while Pharma stocks outperformed counterparts. Sensex has dipped to as much as below 59,300 and Nifty 50 even erased 17,800-level.

This week markets are expected to run in a volatile session ahead of RBI MPC meeting scheduled for tomorrow. According to the reports, Repo rate may remain unchanged tomorrow but rate lift-off not far as inflation noose tightens.

At around 09:40 AM, Sensex was trading at 59, 296.61 below 313 points or 0.53%. Nifty 50 performed at 17,724.70 lower by 82.95 points or 0.47%.

On Nifty, Cipla, Divis Lab, Dr Reddy’s, Sun Pharma and Adani Ports were top gainers on Sensex.

HDFC, UPL, HDFC Bank, Wipro, ONGC plunged between 1-2%.

On the global front, US markets see weakness as Federal Reserve minutes indicate faster than expected contraction of the balance sheet which sees Nasdaq lose another 300 points while Dow Jones closes lower by 140 points. Bond yields fall to 2.58% while oil prices see sharp decline with WTI crude trading @ US$99.

Further, Asian indices opened in the red led by the Japanese ‘Nikkei’ as rating agencies downgrade the growth expectations due to the rise in inflation & geopolitical risk. The “Nikkei’ was trading lower by over 500 points in early trade with most other technology-heavy indices trading lower. The reopening of Hong Kong after the Covid recurrence is seeing business get better with stocks now seeing contrarian buying from foreign investors.