Mumbai, Oct 8 (PTI) Benchmark stock index Sensex tanked 1,045 points while Nifty slid to near 22,230 level on Thursday following heavy selling in rate-sensitive, commodities and FMCG shares amid a sharp spike in crude oil prices and growing prospect of tighter domestic and global monetary conditions.
Falling for the second day running, the 30-share BSE Sensex tumbled 1,045.46 points, or 1.44 per cent, to settle at 71,593.24. During the day, it slumped 1,310.95 points, or 1.80 per cent, to 71,327.75.
The 50-share NSE Nifty dropped 371.25 points, or 1.64 per cent, to end at 22,231.80. Nifty hit its 52-week low of 22,179.90 in intra-day trade.
From the 30 Sensex firms, ITC, InterGlobe Aviation, Power Grid, Bharat Electronics, Adani Ports and NTPC were among the major laggards.
Tech Mahindra, Axis Bank and Infosys were the winners.
Brent crude, the global oil benchmark, jumped 4.25 per cent to USD 104.5 per barrel.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 6,121.37 crore on Wednesday, according to exchange data.
The Reserve Bank of India raised its benchmark repo rate by 25 basis points to 5.50 per cent on Wednesday, its first hike in nearly four years, while signalling that rate cuts are off the table in the near term and that further hikes could follow amid rising inflation, a weak rupee and high crude oil prices.
The six-member Monetary Policy Committee (MPC) of the RBI voted unanimously to raise the repo rate, and sprang a surprise with a shift in policy stance to “calibrated tightening” from “neutral”.
“The domestic market continued in its sharp sell-off mode as the ripple effects of hawkish RBI policy weighed on rate-sensitive sectors, effectively resetting near-term valuation multiples. This headwind was further amplified by persistent FII outflows, harder bond yields, and a depreciating INR,” Vinod Nair, Head of Research, Geojit Investments Limited, said.
Moreover, volatile crude oil prices hovering stubbornly above the $100 mark continue to be a hurdle for the national economy, he added.
In Asian markets, South Korea’s Kospi, Japan’s Nikkei 225 index, Shanghai’s SSE Composite index and Hang Seng index ended significantly lower.
European markets were quoting in negative territory. US markets ended lower on Wednesday.
On Wednesday, the Sensex fell 429.11 points, or 0.59 per cent, to settle at 72,638.70. The Nifty declined 173.05 points, or 0.76 per cent, to end at 22,603.05.
