Indian equity market closed on a weak note, hitting a five-month low as a global market sell-off triggered massive volatility. The volatility index surged over 20 percent, marking the biggest single-day gain in a year.
The Sensex fell 897 points to 58,238, and the Nifty shed 259 points to 17,154. The Nifty Bank slid 921 points to 39,565, and the Midcap index lost 611 points to 30,107.
Here are five things to know about today’s market fall:
1) The Nifty decisively broke its February lows of around 17,255, while Midcap saw a major risk aversion.
2) All Nifty Bank constituents closed the session with huge cuts despite having no connection with Silicon Valley Bank and Signature Bank collapse in United States.
3) Foreign Portfolio Investment (FPI) flows had turned positive in March at Rs 13,540 crore after being negative in January and February, but the collapse of Silicon Valley Bank and Signature Bank has created uncertainty around FPI flows.
4) Nifty is down nearly 5 percent in 2023, underperforming Dow Jones, Nasdaq, CAC, DAX, Kospi, Hang Seng and many other key markets. Nifty has been making lower highs since December 1, 2022.
5) Some of the key factors impacting Indian markets are its outperformance in 2022, China’s reopening, the Adani-Hindenburg saga, rising interest rates in US, and the US banking issues.
In the bleak session, 47 of 50 Nifty stocks closed in the red, with Infosys, RIL, ICICI, and HDFC Bank being the biggest drags. Market breadth firmly favoured declines, with the advance-decline ratio at 1:5. BSE companies erased a market capitalisation of nearly Rs 4 lakh crore today.
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