Sensex slides 2% on selling in banking, IT stocks

Business


Key benchmark indices on Monday fell sharply following selling pressure in banking and IT stocks. The S&P BSE Sensex plunged 1,172.19 points, or 2.01%, to 57,166.74.

The top losers included Infosys down 7.27%, HDFC (4.81%), HDFC Bank (4.74%), Tech Mahindra (4.69%) and Wipro (3.67%.) Similarly the NSE Nifty index fell 302 points or 1.73% to 17,173.65 points.

“Lower-than-expected results from heavyweights like Infosys and HDFC Bank impacted sentiments,” Ajit Mishra, VP, Research, Religare Broking Ltd. said. “Mixed trend was seen amongst the sectoral indices wherein IT and banking were the top laggards while auto, FMCG and energy were the gainers.”

“We believe global cues as well as the outcome of Q4 earnings will continue to add volatility in the coming sessions. Hence, we would remain cautious on the markets and suggest traders to keep their position hedged,” he added.

 “We expect FY23 to witness continued volatility in equity markets, especially in the first half of the year with rising interest rates globally and high inflation, which is expected to persist,” Naveen Kulkarni, Chief Investment Officer, Axis Securities, said.

“In this scenario, we expect money to move from long-duration debt funds to equity funds in the second half of the year, which should bode well for equities,” he said.

“We continue to remain positive on sectors like metals, hospitals, hospitality, oil refining, capital goods. Some underperforming sectors might include discretionary consumption, IT, NBFCs,” he added.



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