The Indian stock market experienced a sharp decline, with the Sensex dropping by more than 600 points during trading hours on Thursday. The BSE Sensex concluded the day at 65,508, reflecting a significant decrease.
Winners and losers:
Among the gainers at the BSE, Hindustan Oil Exploration Co. Ltd stood out with a remarkable increase of 9.98% in its share value. Other notable gainers included MCX (+8.38%), MapMyIndia (+7.15%), Syrma (+7.25%), and Fincables (+7.67%).
In contrast, Tech Mahindra led the losers in the Sensex pack, witnessing a decline of 4.59%. It was followed by Asian Paints, Wipro, Kotak Mahindra Bank, Bajaj Finserv, Infosys, ITC, Mahindra & Mahindra, Hindustan Unilever, IndusInd Bank, Reliance Industries, and JSW Steel.
The day began positively, with the Sensex surging by 287.32 points to reach 66,406.01 in early trading. Similarly, the Nifty showed progress, advancing by 50.2 points to reach 19,766.65.
However, the momentum couldn't be sustained, and both benchmark indices shifted into negative territory as the trading session progressed. The 30-share BSE benchmark ended 64.71 points lower at 66,053.98, and the Nifty closed 14.20 points down at 19,702.25.
The market experienced widespread selling as concerns mounted over rising oil prices. Crude oil prices above USD 90 were seen as a threat to inflation and corporate profit margins. Additionally, higher interest rates and US bond yields influenced foreign institutional investors (FIIs) to engage in selling activities.
Vinod Nair, Head of Research at Geojit Financial Services, commented, "The selling was broad-based, as investors are on alert given the rise of oil prices. If crude continues to stay above the USD 90 level, it will be a threat to inflation and boil the operational margins. Currently, the combination of higher interest rates and US bond yields are influencing FIIs to stay in the selling mode."
On the previous trading day, the BSE benchmark had gained 173.22 points (0.26%) to settle at 66,118.69, while the Nifty had advanced by 51.75 points (0.26%) to close at 19,716.45.