Opening Bell: Benchmark indices sink more than 2% on weak global cues; Bank and Realty stocks fall the most
Benchmark indices traded lower in the pre-opening session on the back of weak global cues. In the pre-opening session, Nifty futures on the Singapore Exchange traded 318.5 points, or 1.97%, lower at the 15,866.50 level indicating a negative start on Dalal Street.
On the global front, US stocks showed their largest weekly decline (percentage wise) since January and settled deeply lower on June 10. The steeper-than-expected rise in US consumer prices in May made investors anxious regarding more aggressive interest rate hikes by the Federal Reserve. On June 13, Tokyo shares opened down on due to global inflation worries and high-tech issues. Oil prices tanked more than USD 2 as a rise in COVID-19 cases in Beijing dampened hopes for a lift up in China's fuel demand, while worries about economic growth due to rising global inflation further weighed over the market sentiments.
At the open, Sensex tumbled 1,311.76 points or 2.42% starting at the 52,991.68 level, and the Nifty fell 373.20 points or 2.30% trading at the 15,828.60 level. Cipla, Sun Pharma, SBI Life Insurance and Power Grid Corporation were among the major gainers on the Nifty, while losers were Kotak Mahindra Bank, HDFC, L&T, Hindalco Industries and Infosys. The only gainer in Sensex at the open was Sun Pharmaceutical Industries whereas the top losers dragging the index were HDFC, Kotak Mahindra Bank, Infosys, Wipro and Tech Mahindra.
In the broader markets, at 9.30 am BSE Mid Cap and Small Cap indices traded substantially lower with a fall of 2.39% and 2.51%, respectively. Despite the bearish trend, the two mid-cap stocks trading in green were Rajesh Exports and Kansai Nerolac whereas the top three small-cap stocks were Future Retail, Future Consumer and Future Enterprises gaining up to 5%.
On the sectoral front, indices traded lower with the majority of indices declining between 1% to 3%. BSE Bankex and BSE Realty indices dropped beyond 3% dragged by stocks like Godrej Properties, DLF, Oberoi Realty, Bank of Baroda, ICICI Bank and Federal Bank.
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