Markets decline for 3rd day on weak global cues; ICICI bank slumps 2.81%

share broker reacts as Sensex & Nifty prices plummet.
| Photo Credit: ANI

Equity benchmark indices Sensex and Nifty buckled under selling pressure for the third straight session to settle nearly 1% lower on Thursday as investors pared exposure to auto, banking and financial shares amid a sluggish trend in global markets.

Global equities fell after the U.S. Federal Reserve signalled that they expect to raise rates once more this year to fight inflation.

The 30-share BSE Sensex fell 570.60 points or 0.85% to settle at 66,230.24. During the day, it plunged 672.13 points or 1% to 66,128.71.

The Nifty declined 159.05 points or 0.80% to end at 19,742.35.

“Domestic market declined following a hawkish stance by the Fed chair and prolonged high-interest rate trajectory, which is not positive for a slowing global economy.

“PSU Banks and Mid and small-caps were the worst hit due to stretched valuations and concern over moderation in yields. Rising oil prices and erratic rainfall further led investors to stay cautious in the market,” Vinod Nair, Head of Research at Geojit Financial Services, said.

ICICI Bank was the biggest loser in the Sensex pack, slipping 2.81%, followed by Mahindra & Mahindra, State Bank of India, UltraTech Cement, IndusInd Bank, Kotak Mahindra Bank, Tata Motors, Bajaj Finserv, Axis Bank and Power Grid.

Tech Mahindra, Bharti Airtel, Infosys, Asian Paints, Hindustan Unilever, Larsen & Toubro and Titan were the gainers.

In Asian markets, Seoul, Tokyo, Shanghai and Hong Kong ended in the negative territory.

European markets were trading in the negative territory. The U.S. markets ended in the red on Wednesday.

The U.S. Federal Reserve left its key interest rate unchanged on Wednesday for the second time in its past three meetings, a sign that it’s moderating its fight against inflation as price pressures have eased. But, Fed officials also signalled that they expect to raise rates once more this year.

Global oil benchmark Brent crude declined 0.81% to $92.77 a barrel.

Foreign Institutional Investors (FIIs) offloaded equities worth ₹3,110.69 crore on Wednesday, according to exchange data.

The BSE benchmark had tumbled 796 points or 1.18% to settle at 66,800.84 on Wednesday. The NSE Nifty declined 231.90 points or 1.15% to end below the 20,000 mark at 19,901.40.