Benchmark indices slumped in trade on Thursday, after the Dow Jones fell more than 1000 points on worries that faster than expected interest rates rise, could lead to recession. Indian benchmark indices, followed global markets lower with the Sensex down a whopping 1387 points, and was below the 53,000 points mark in trade. The Nifty Dropped 424 points.
A weakish session persisted through the day, as Dow Jones Futures once again pointed to lower openings for the markets today. The rupee too hit a lifetime low, as demand for the dollar continued unabated.
The IT pack was the worst impacted with worries that a recession in the US, could substantially reduce IT spends. Infosys, HCL Tech, Wipro and Tech Mahindra all lost more than 5% in trade and were the biggest losers from the Nifty. Banking stocks too lost ground with the Bank Nifty down around 2.77% in trade.
S Hariharan, Head of Sales Trading, Emkay Global Financial Services on the market performance, "After increasing net longs single stock open interest since mid-Apr, Retail has started to trim long positions - they net long open interest is down $500 mn over the last 5 sessions. FII selling intensity in cash segment has also ebbed in this period. As a result, headline indices have bounced on low market volumes, from extremely oversold conditions. Metals stocks have been the weakest segment of the market, with long unwinding seen across ferrous as well as non-ferrous stocks. Autos and standalone refinery stocks have been the strongest sectors on account of revenue visibility."