The Indian stock markets witnessed a sharp selloff on Wednesday morning, with the benchmark Sensex plunging over 1,000 points and the Nifty slipping below the 21,750 level.
The BSE Sensex tanked 1,029 points or 1.4% to trade at 72,099 in early deals. Similarly, the NSE Nifty 50 index fell 287 points or 1.3% to 21,745.
The banking stocks were the worst hit in today’s session, contributing significantly to the indices’ fall. HDFC Bank plunged over 6% on the BSE and was the top Sensex loser. Other banking names like Kotak Mahindra Bank, ICICI Bank, and Bajaj Finserv also faced heavy selling pressure.
Besides banking, metal and realty stocks also bore the brunt of selling. Tata Steel, JSW Steel, IndusInd Bank, Mahindra & Mahindra were among the other prominent losers – down between 2-5%.
On the flip side, IT stocks like TCS, Infosys, HCL Tech, and Tech Mahindra managed to buck the weak trend and trade higher. Gains in these counters, along with PowerGrid, L&T, and ITC, lent some support and capped the downside.
The sharp fall in domestic indices mirrored the bearish trends in global equity markets amid recessionary fears. Lingering worries over inflation and tighter monetary policy across the world have spooked investor sentiment.
In the previous session on Tuesday, the Sensex had dropped 199 points or 0.3% to close at 73,129. The Nifty 50 index lost 65 points or 0.3% to settle at 22,032.
