Closing Bell: Bears take control of the Indian market
Domestic equity bourses Sensex and Nifty suffered sharp losses on Monday following a gap-down opening, as crude oil prices surged past the USD 130 a barrel mark amid increased geopolitical tensions.
The Indian equity market continued to fall for the fourth straight session amid the ongoing Russia-Ukraine war. Investors remained worried as crude oil prices went past USD 130 a barrel, the highest level since July 2008, which is heightening fears of higher domestic inflation.
Oil prices rose drastically after the United States and European allies explored a Russian oil import ban. As of now, India imports more than two-thirds of its oil requirements, and higher rates push up the country's trade and current account deficit while also hurting the rupee and fuelling inflation.
Owing to all this development, headline indices closed deep in the red on March 7 but trimmed some of the losses. At the closing bell, the Sensex ended 1,402.74 points or 2.58% lower at 52931.07, and the Nifty shed 366.10 points or 2.25% at 15879.30. On the market breadth, around 837 shares have advanced, 2543 shares declined, and 129 shares are unchanged.
Among the top Nifty loser, IndusInd Bank lost the most down by 8.14% to Rs 828.50. Maruti Suzuki India, Axis Bank, Britannia Industries and Bajaj Finserv were among the top losers. Top gainers on a bleeding day were Bharti Airtel, HCL Tech, Tata Steel and Infosys which settled in the green.
On a sectoral basis, the metal index gained over 2%, while auto, bank, capital goods, FMCG, PSU Bank and realty fell 2-5%.In the broad market, the BSE midcap and smallcap indices shed over 2% each.
In numbers, investors' wealth tumbled over Rs 5.61 lakh crore to Rs 241.17 lakh crore today, tracking a heavy sell-off in domestic equities.
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