Benchmark indices ended lower on Thursday as rising crude oil prices and weaker global cues dampened the market mood. The market was dragged down by declines in IT, technology, fast moving consumer goods, consumer durables and automobile stocks.
The BSE declined over 610 points, about 0.92%, to close at 65,508.32, while the NSE fell about 193 points, about 0.98%, to end the day at 19,523.55.
S&P BSE Information Technology index fell 1.84% followed by S&P BSE FMCG index, which fell 1.74%. S&P BSE Teck, S&P BSE Consumer Durables and S&P BSE Auto indices declined 1.49%, 1.29% and 1.24%, respectively on Thursday.
ADVERTISEMENT
The fall resulted in investor wealth declining by `2.95 trillion to `316.7 trillion during the session.
Ambareesh Baliga, independent market analyst, said that along with higher oil prices and weak global cues, the hawkish stance of US Federal Reserve, where there are fears of a rate hike at the end of 2023, continues to worry investors. This will have a negative impact as more institutional money will flow out.
“Nifty has good support at 19,500-19,600. If the market cracks from there, then one will see a sharper correction of about 750-1,000 points on the Nifty,” said Baliga, adding that this band is being closely watched.
The fall in Sensex was largely due to fall in IT stocks.
Meanwhile, the NSE Nifty 50 Volatility Index (VIX), which is a gauge of expected volatility over the course of the next 30 days, rose 11% — the most since March 13, according to Bloomberg.