RIL, HDFC twins drag Sensex to end below 38,000; key highlights from stock market sell-off

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Published: May 8, 2019 5:04:04 PM

Sensex and Nifty fell for the third consecutive day on Wednesday as fears of a trade war between the US and China continued to spook investors.

HDFC Bank and HDFC shares too contributed to a major decline in the 30-share index.

Sensex and Nifty fell for the third consecutive day on Wednesday as fears of a trade war between the US and China continued to spook investors. Notably, the Sensex shed 488 points to end below the 38,000-mark at 37,789.13, while the Nifty closed 139 points down at 11,359.45. Shares of billionaire Mukesh Ambani-led Reliance Industries ended 3.4% lower at Rs 1,299.45, contributing 144 points to the index’s decline. HDFC Bank and HDFC shares too contributed to a major decline in the 30-share index, together accounting for a 98 point decline, data from BSE showed. Intra-day, the Sensex slumped 533 points to 37,743.07.

Apart from Reliance Industries and HDFC twins, the Sensex was mainly dragged by ICICI Bank and SBI, which lost up to 2.5%. Shares of Bajaj Finance, Tata Motors, Bajaj Auto, Sun Pharma, NTPC, IndusInd Bank, Vedanta, M&M, Yes Bank and ONGC were among the other losers, shedding up to 3.22 per cent. Notably, only Asian Paints, HCL Tech and TCS ended in the green, rising up to 0.60 per cent.

Also read: Rich Indians own more gold than global average; set to lap up more in 2019

The plunge in the Indian markets comes tracking the Asian stocks, which extended their decline for the third consecutive day. The global markets have been rattled ever since US President Donald Trump on Sunday threatened to hike tariffs on $200 billion worth of Chinese goods later this week.

Energy and financial stocks came under selling pressure amid foreign fund outflows and subdued corporate earnings, experts told PTI. Foreign institutional investors (FIIs) sold shares worth Rs 645.08 crore on Tuesday, while domestic institutional investors (DIIs) bought equities to the tune of Rs 818.84 crore, provisional data available with stock exchanges showed.

Taking stock of today’s volatile session, Sahaj Agrawal, Head of Derivatives- Kotak Securities said that on the downside 11000-11,100 is expected to be tested before we witness an aggressive recovery. “Investors are advised to use this correction as an opportunity to accumulate while traders should wait for momentum reversal from strong support levels. We strongly believe this is a corrective phase in an up trending market,” Agrawal said.

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