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Benchmark equity indices on Thursday slumped more than 1.2% on account of selling pressure.
The S&P BSE Sensex slid 770.48 points or 1.29% to 58,766.59 points. The Sensex stocks which lost the most included Reliance (2.99%), TCS (2.49%), Sun Pharma (2.42%), Tech Mahindra (2.15%), HUL (1.99%) and NTPC (1.98%).
The NSE Nifty-50 Index too fell 216.50 points or 1.22% to 17,542.80 points.
“Domestic indices moved in line with peers while prospects of higher rate hikes, elevated inflation and a slowing economy put pressure on stock markets around the world,” said Vinod Nair, Head of Research, Geojit Financial Services.
“Although India’s Q1 GDP was reported below the RBI’s estimate of 16.2%, the strong growth seen in manufacturing activity during Q2 so far indicates a strong recovery in the domestic market. Additionally, ongoing support from FIIs will obscure the weakness, helping domestic indices to stay resilient,” he added.
The rupee, meanwhile, declined by 4 paise to close at 79.56 against the U.S. dollar on Thursday due to a stronger dollar in the global markets and losses in the domestic equity markets.
“The Indian rupee gave up earlier gains to end the session marginally weaker this Thursday. Recovery of the greenback, weak Asian and EM peers and weak Asian and domestic equities weighed on sentiments,” said Sriram Iyer, Senior Research Analyst at Reliance Securities.
(With PTI inputs)
