Sensex drops to over 200 points; Nifty Trades Below 17,500; Hero MotoCorp, HCL Tech, TCS Top Drags

Sensex was up 770 points or 1.29% to close at 58,788 on Thursday.

New Delhi: India’s equity benchmarks extended the opening trade decline on Friday, driven by weakness in information technology and auto stocks. At 9:18 a.m., the benchmark BSE Sensex slipped 207 points or 0.35% to 58,581, while the broader NSE Nifty was down 68 points or 0.39% to 17,492.

Asian stocks recouped some of their steep losses from the previous session after US markets limited further declines. Apple posted record sales during the holiday quarter, beating estimates. Its shares rose more than 5% in after-hours trading.

At home, mid and small cap stocks were in the negative zone, with the Nifty Midcap 100 Index down 0.43% and small cap stocks trading down 0.45%.

On the stock-specific front, Hero MotoCorp was the biggest Nifty laggard as the stock slumped by 1.26% to Rs 2,746.65. HCL Tech, Tata Consultancy Services and Reliance Industries were also among the laggards.

On the other hand, ONGC, Tata Steel, Hindalco, JSW Steel and Grasim Industries were among the winners.

Regarding BSE, the overall market breadth was positive as 1,713 stocks were up while 915 were down.

On the 30-stock BSE platform, TCS, Titan, Wipro, HCL Tech and Infosys posted the most losses, with their shares slipping as much as 1.28%.

Meanwhile, Tata Steel, Shree Cement, Bank of India, InterGlobe Aviation (the parent company of IndiGo) and One 97 Communications (the parent company of Paytm) are among the companies that will announce their December quarter results later in the day.

Sensex was down 770 points or 1.29% to close at 58,788 on Thursday, while the broader NSE Nifty plunged 220 points or 1.24% to settle at 17,560.

Overnight, the euro recorded its strongest rise in more than a year after European Central Bank President Christine Lagarde left the door open for rate hikes this year and said the inflation was higher for longer than expected.

The Bank of England raised rates to 0.5% and almost half of its policymakers wanted a bigger increase. The S&P 500 had its worst day in nearly a year.

U.S. stocks fell after a strong open as investors juggled positive economic news with mixed corporate earnings, geopolitical unrest and the prospect of a more hawkish Federal Reserve.

U.S. markets had opened higher after the Commerce Department’s fourth-quarter GDP expectation showed the U.S. economy in 2021 grew 6.9% at its fastest pace in nearly four decades. But the gains were pared as investors pondered how strong economic growth might inform Fed thinking.

In its latest policy update, the Fed indicated it would likely raise rates in March, as widely expected, and reaffirmed its intention to end its pandemic-era bond purchases this month. there before launching a significant reduction in its assets.

Meta fell more than 26% on Thursday, losing more than $200 billion of its market capitalization in what was the largest one-day drop in value by a US company. It dragged the Nasdaq down 3.7%, its worst day in 17 months.

However, Amazon reported better-than-expected earnings after the bell and the stock jumped 17%, pushing Nasdaq 100 futures up 1.7% and bolstering sentiment in Asia.

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