Benchmark stock indices plunged almost 2% on Thursday amid concerns about the impact of inflation on economies worldwide, prompting analysts to flag the possibility of a further slide in the coming days.
The S&P BSE Sensex nosedived 1,158.63 points, or 1.89%, to 59,984.70. Selling pressure was witnessed across the board and the fall was led by banking stocks.
The top Sensex losers included ITC, down 5.5%, ICICI Bank, which fell 4.4%, Kotak Bank (4.1%), Axis Bank (3.8%) and Titan (3.7%).
The NSE Nifty 50 index plunged 353.70 points, or 1.94%, to 17,857.25 amid all-round profit booking. Monthly expiry of derivatives also added to the selling pressure, analysts said.
Ajit Mishra, VP Research, Religare Broking Ltd., said, “Weak signals from the global counterparts were weighing on sentiment, which further deteriorated with a decline in index majors”.
Earlier, Japan’s Nikkei led losses in Asia with a fall of 0.9%, Reuters reported.
“Most sectoral indices ended lower… banking, metal and realty were among the top losers,” Religare Broking’s Mr. Mishra said.
“This fall in the index has derailed the recent recovery and we may see a further slide in the following sessions. We reiterate our cautious view on markets and suggest restricting leveraged positions,” he added.