Market Closing: Sensex Falls 617 Points, Nifty Ends At 22,333; BSE SmallCap, SBI Tank 2% Each

Key benchmark indices started the week on a dismal note, ending Monday’s session with sharp losses ahead of key CPI inflation data both in India and the US on Tuesday. The BSE Sensex plunged 617 points to end at 73,503. The Nifty50 shed 161 points to close at 22,333.

Most largecaps closed in red with Tata Steel, Power Grid, SBI, HUL, Tata Consumer, Bajaj Auto, IndusInd Bank, Tata Motors and NTPC leading the decline with 1-3 per cent losses.

The fall was aggravated after the Supreme Court dismissed SBI’s plea, directing it to fetch details of electoral bonds by Tuesday, March 12. The stock lost nearly 2 per cent. Read here

The sentiment was soured in the broader markets as well after reports said that Sebi may revise rules for mutual funds investing in small-cap stocks amid concerns of overheating in this segment.

As a result, the Smallcap index on BSE nosedived 2 per cent. The BSE MidCap index ended 0.24 per cent lower.

Among sectors, Nifty Healthcare was the only gainer, which closed 0.45 per cent. Nifty Media lost 3 per cent. Nifty Bank, PSB, Metal, Realty and Oil & Gas pockets ended over 1 per cent lower.

Vinod Nair, Head of Research, Geojit Financial Services, said:”Continued selloff in global markets due to uncertainty over rate cuts impacted the domestic market sentiment, which is currently at an overbought level.”

He further said: “The stronger than expected US nonfarm payroll data and caution ahead of the release of US inflation data tomorrow kept investors on the edge.”

The broader market continued its underperformance due to valuation concerns, while investors are rebalancing their portfolios to include safe haven assets like gold, he added.

Global Cues

In Asia, Japan’s Nikkei index fell below the 39,900 mark after slipping nearly 2.40 per cent on Monday morning. South Korea’s Kospi started off the week in red, with the index falling by 0.21 per cent.

Meanwhile in the US, the S&P 500 index fell by 33.67 points, or 0.65 per cent, and the Nasdaq composite declined by 166 points, down 1.16 per cent from its previous close.