“The current sell-off is due to rapid rise in FIIs selling that has been triggered by hawkish world central banks’ policy, cautious view on Indian market due to high valuation compared to peers and a drop in retail inflows.
After a gap-down start, the BSE Sensex dropped 1,089 points at 55,923 levels while the Nifty50 breached the 16,700-mark to quote at 16,661.
25 of the 30 Sensex constituents were in the red, led by Tata Steel, Bajaj Finance, and SBI.
The market breadth favoured sellers with nearly 2,500 stocks in the red on the BSE against 500 stocks in the green.
“The IPO saw a muted demand on the back of losses where other real estate companies have been booming in the last two years.
That apart, Asian stocks dropped in early trading today after China slashed its benchmark lending rate for the first time in more than one-and-a-half years.
The BSE Sensex quoted 653 points lower at 56,358 level while the Nifty50 broke below the 16,800-mark at 16,795, down 190 points.
“Rising inflation, hawkish central banks, exploding Covid cases caused by the Omicron variant, sustained selling by FIIs and slowing growth momentum in the developed economies combined to produce the perfect storm for the markets.
Among individual stocks, shares of Future Retail zoomed 20 per cent after India’s antitrust body competition commission of India on Friday said Amazon’s 2019 deal with Future will remain in abeyance, citing US e-commerce major’s failure to notify certain commercial arrangements as part of 2019 deal.
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