Market Wrap, Oct 8: SENSEX plunges 1,045 pts, NIFTY sinks 1.6% as oil tops $104; over ₹10 lakh crore wiped out

The market sentiment was further weighed down by rising bond yields, weak cues from Asian peers, continued outflow by the foreign investors and the RBI’s recent repo rate hike.

All sectoral indices ended in the red, while the midcap and smallcap indices underperformed the benchmark indices.

“Global markets sell-off had a bearing on Indian equity indices as soaring US bond yields coupled with a sharp spike in international crude oil prices to over $102 a barrel, pushed the benchmark Nifty to a fresh 52-week low. Intense FII selling of domestic shares and anticipated further rate hikes by the RBI are also sending jitters to local investors, as higher interest rates will hurt long-term growth prospects,” said Ankur Punj, Managing Director, Equirus Wealth.

The decline in the market comes following an increase in crude oil prices on Thursday. Oil prices surged amid concerns over supply from the Middle East following an increase in attacks on shipping in the Gulf and the Strait of Hormuz, while US output fell as a hurricane threatened offshore production.

Investing.com data showed that the benchmark Brent crude oil prices jumped 4.2% to a high of $104.43 per barrel in the afternoon session, in comparison to $100 per barrel at the previous commodity market close.

The rising bond yields and the situation of global economic tightening are resulting in investors shifting their investments to other safe-haven assets, likely pulling out funds from emerging markets into US Treasuries and the benchmark dollar.

According to exchange data, on Wednesday, the foreign institutional investors (FIIs) sold equities worth ₹6,121.37 crore on a net basis, while the domestic institutional investors (DIIs) purchased ₹4,596.57 crore worth of equities.

Globally, all the indices in Asia ended red on Thursday following elevated oil prices and a rise in US Treasury yields. Japan’s Nikkei index closed 1.08% lower, South Korea's KOSPI fell 2.69%, while Hong Kong's Hang Seng slipped 1.89%, and China's Shanghai Composite dropped 0.79%.

On Wall Street, the US equity indices ended lower after the trading session on Wednesday, October 7, as investors focused on the weak global market cues.

The Dow Jones Industrial Average lost 341.11 points, or 0.66%, to end at 51,180.17, the S&P 500 dipped 17.18 points, or 0.22%, to close at 7,801.75, while the Nasdaq Composite settled 61.19 points, or 0.22%, lower at 27,538.69.

Here are the key developments of Thursday's session that you need to know

As many as 3,722 stocks traded on the NSE on Wednesday. Out of this, 660 advanced and 2,950 stocks declined, while 112 scrips remained unchanged.

This indicated that the market breadth was in favour of declines.

A total of 71 stocks hit their 52-week highs, while 271 stocks touched their one-year lows. Besides, 90 stocks hit their upper circuit limits, and 161 touched their lower circuit bands on Wednesday.

The market capitalisation of NSE-listed firms stood at ₹456.69 lakh crore at the close of the session, marking an erosion of ₹10.23 lakh crore from the previous day.

India VIX, the volatility gauge, stood at 15.31 levels, slipping 10.26%.

The NIFTY Smallcap 100 index tumbled 2.34% to end at 19,050.10 levels, while the NIFTY Midcap 100 index closed at the 57,882.50 level, losing 2.53%.

All the sectors ended the session in red, with NIFTY Metal (-3.55%) taking the lead among the pack. NIFTY Realty (-3.16%), NIFTY Media (-2.79%), NIFTY Auto (-2.49%) and NIFTY Pharma (-2.32%) were the other top laggards.

On the NIFTY50 index, 47 stocks declined while only 3 closed in green on Thursday.

Adani Enterprises was the biggest loser, declining 5.36%, followed by JSW Steel (-4.46%), ITC (-4.03%), Max Healthcare (-3.81%) and InterGlobe Aviation (-3.55%).

On the other hand, Infosys (0.5%), Tech Mahindra (0.34%) and Axis Bank (0.2%) were the only gainers on the 50-share index.