Sensex and Nifty drop more than 1% after pullback rally fails
Bengaluru, June 22 Indian stocks fell more than 1% on Wednesday, with the metals index plunging more than 4%, as global investors remained concerned about monetary policy tightening and recession fears.
The NSE Nifty 50 index fell 1.09% to 15,468.5, while the S&P BSE Sensex fell 0.9% to 52,026.81. Both indices had recorded their best session in three weeks on Tuesday.
“Yesterday’s rally was a pullback in a bear market. But there was not enough steam to sustain the momentum. There was also a lot of short coverage,” said VK Vijayakumar, chief market strategist. investments at Geojit Financial Services.
India’s benchmark 10-year yield fell slightly to 7.42% from its previous close of 7.48%.
Metals stocks fell after their short rebound on Tuesday as a stronger US dollar and growing supply concerns sent London copper prices down more than 1%.
The Nifty Metal Index fell 4.5%, while the Hindustan Copper fell 8.4%.
The Nifty energy index lost 1.6%, with Oil and Natural Gas Corp and Gas Authority of India down 4% each.
Brent crude was down at $113.32 a barrel, after a push by US President Joe Biden to lower fuel costs.
Asian stocks fell in volatile trade, failing to extend an overnight rally on Wall Street, while the Japanese yen hit a new 24-year low against the dollar.
Hero MotoCorp and Bajaj Auto were among the Nifty 50 Index winners.
Jain Irrigation Systems jumped nearly 17% after the company said on Tuesday it would sell 78% of its international irrigation business to Temasek-owned micro-irrigation company Rivulis.
June 22, 2022