The Indian stock markets opened deep in the red on Thursday morning as negative global cues weighed on investor sentiment. The S&P BSE Sensex plunged over 500 points to trade at 70,526 in early deals. The broader NSE Nifty 50 index also tanked over 150 points to 21,303.
The losses were broad-based with IT, banking, pharmaceuticals, and FMCG stocks bearing the brunt of the selling. Tech Mahindra was the top loser on the Sensex, plunging nearly 5% in morning trade. Other major laggards included Axis Bank, Sun Pharma, ITC, HCL Technologies, and HDFC Bank.
Meanwhile, NTPC, IndusInd Bank, Hindustan Unilever, Bajaj Finserv, and Bajaj Finance bucked the weak market trend to trade higher.
In the broader market, midcap and smallcap stocks showed some resilience and traded mildly in positive territory. However, overall market breadth remained weak indicating the bearish undertone.
All sectoral indices traded lower, apart from realty which saw some buying interest. The Nifty IT index slid 1% followed by losses in healthcare, banks, and financial services stocks.
Analysts believe the markets are reacting to weak global cues as recession fears in the US and Europe remain elevated. Lingering geopolitical tensions and hawkish central bank policies across the world have also dampened investors’ appetite for equities. Most other Asian markets were also trading with sizable cuts.
Going ahead, traders will keep a close eye on the upcoming US GDP data for further direction. Any negative surprises on the economic growth front could exacerbate the sell-off in global risk assets.
