Stock market indices open in red: Sensex plunges over 1,000 points, Nifty below 16,000

US markets saw the worst sell off since June 2020 as inflation fear looms

FPJ Web DeskUpdated: Thursday, May 19, 2022, 09:21 AM IST
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Indian benchmark indices face heavy turbulence today amid negative global market cues | ANI Photo

The Indian benchmark indices face heavy turbulence today amid negative global market cues. At 09:16 AM, the Sensex was down 900.65 points or 1.66 percent at 53,307.88. The broader Nifty was down 268.90 points or 1.66 percent at 15,971.40. About 370 shares have advanced, 1,629 shares declined, and 73 shares are unchanged.

Snapping two days of gaining streak, the benchmark Sensex closed 110 points down on Wednesday dragged by selling pressure in power, IT and banking stocks. The 30 stock S&P BSE Sensex slipped 109.94 points or 0.20 percent to close at 54,208.53 points against its previous day's close at 54,318.47 points. The broader Nifty 50 of the National Stock Exchange fell 19.00 points or 0.12 percent to 16,240.30 points against its previous day's close at 16,259.30 points.

Asian stocks plummet amid rising inflation

Asian stocks tracked a steep Wall Street selloff on Thursday, as investors fretted over rising global inflation, China's zero-COVID policy and the Ukraine war, while the safe-haven dollar held most of its strong overnight gains.

MSCI's broadest index of Asia-Pacific shares outside Japan fell 2 percent in early Asian trading hours, the first daily decline in a week. Japan's Nikkei tumbled 2.4 percent. Pulling it lower was a 1.5 percent loss for Australia's resource-heavy index, a 2.6 percent drop in Hong Kong stocks and a 1 percent retreat for blue chips in mainland China.

Dollar eases

The US dollar gained ground as the sell-off in risk assets boosted the safe-haven appeal of the greenback.

The dollar index, which tracks the greenback against six major peers, edged 0.05 percent lower to 103.74, after a 0.55 percent jump overnight that ended a three-day losing streak. The yen slipped, with the dollar adding 0.21 percent to 128.495 yen after a 0.86 percent tumble on Wednesday.

Devarsh Vakil, Deputy Head Retail Research, HDFC Securities said, the ongoing war in Ukraine, rising interest rates, and the recent jump in the US dollar also added to the uneasiness. It was one of the worst days for the markets since 2020. The sentiment was underscored by a 9 percent surge in British consumer prices and a faster-than-expected acceleration in inflation in Canada.

US markets tumble on poor corporate earnings and inflation worries.

Wall Street ended sharply lower on Wednesday finishing near the lows of the day, following disappointing quarterly results from Target Corporation and Lowe's Companies, with both retailers warning of rising cost pressures.

Target shares plummeted 24.8 percent, its biggest one-day percentage drop since the "Black Monday" stock market crash on October 19, 1987, just a day after Walmart Inc warned of similar margin squeezes.

The S&P 500 lost 163.59 points, or 4.00 percent, to end at 3,925.18 points, while the Nasdaq Composite lost 561.50 points, or 4.69 percent, to 11,423.03.

On Wall Street, the Dow Jones Industrial Average tumbled 1165 points or 3.6 percent to 31490, the S&P 500 Index fell 165 points or 4.0 percent to 3924, putting the S&P 500 on the precipice of bear market territory and the Nasdaq plunged 566 points or 4.7 percent to 11418.

Oil prices dip

Oil prices dipped in volatile trade, reversing early gains as traders grew less worried about a supply crunch after government data showed US refiners ramped up output. US crude settled down 2.5% at $109.59 per barrel and Brent settled at $109.11, down 2.52 percent on the day.

Petrol, diesel prices unchanged

Oil Marketing Companies have left fuel rates unchanged. The prices have remained unchanged for 43 consecutive day.

Petrol in Delhi costs Rs 105.41 per litre and diesel Rs 96.67 per litre. In Mumbai, petrol and diesel prices per litre are at Rs 120.51 and Rs 104.77 respectively.

In Chennai, petrol costs Rs 110.85 per litre and diesel Rs 100.94 per litre. In Kolkata, petrol is at Rs 115.12 per litre and diesel Rs 99.83 per litre.

Fuel prices cannot be controlled till India increases oil production

Union Minister Rameswar Teli on Wednesday said that prices of petrol and diesel cannot be controlled till India increases production of oil, saying that the country is dependent on international market for its fuel needs.

''About 83 percent of oil consumed in the country is imported by us. We are dependent on international market, and till we increase our production, its price cannot be controlled,'' the minister of state for petroleum and natural gas said on the sidelines of an event in Amethi.

Rupee declines

The Indian rupee opened at 77.64 against dollar on May 19.

The rupee on Wednesday declined by 16 paise to close at its fresh lifetime low of 77.60 against the US dollar amid unabated foreign fund outflows and a stronger greenback in overseas markets.

At the interbank foreign exchange market, the rupee opened lower at 77.57 and later hit the day's low of 77.61 as the dollar rebounded in global markets following hawkish comments from US Federal Reserve chief Jerome Powell.

Crude oil prices also surged over 1 per cent, which weighed on the rupee. The local unit finally ended at its all-time low of 77.60, showing a loss of 16 paise over its previous close of 77.44.

Ukraine conflict will not derail India's economy: Moody's

India's economy is back on track after the pandemic and it does not expect the military conflict (in Ukraine) to derail the recovery, global financial services provider firm Moody's Analytics said. Several months into the conflict, fears over the impact have moderated. "Following a robust rebound of over 9 percent in the year ending March 2022 (fiscal 2021), we expect real GDP to grow 8.2 percent in fiscal 2022, the fastest expansion among G20 countries globally and partly reflecting ongoing base effects from pandemic-led disruptions," it said in a report.

ITC Q4 profit up 11.60%

ITC Ltd on Wednesday reported an 11.60 per cent rise in its consolidated net profit to Rs 4,259.68 crore for the fourth quarter ended in March 2022 driven by all-round growth across verticals.

Results on May 19

The following companies will release their March quarter results today (May 19_: HPCL, Ashok Leyland, Bosch, Chambal Fertilisers & Chemicals, Container Corporation of India, Endurance Technologies, Gland Pharma, Dr Reddy’s Laboratories, Godrej Consumer Products, Novartis India, Ramco Systems, Punjab & Sind Bank, Rossari Biotech, Ujjivan Financial Services, and Suryoday Small Finance Bank.

(With inputs from Reuters, Agencies)

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