Sensex tumbles nearly 483 points on selling in IT, banking shares


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The Sensex fell nearly 483 points on selling IT, capital goods and banking stocks.

The benchmark stock index started the week in a muted note on Monday, with the Sensex falling nearly 483 points on losses in global equities due to sales of IT, capital goods and banking stocks.

The Sensex was down 482.61 points, or 0.81 percent, at 58,964.57. During the day, it fell 552.78 points, or 0.92 percent, to 58,894.40.

The 50-issue Nifty lost 109.40 points, or 0.62 percent, to 17,674.95 as 29 of its stocks declined.

From the Sensex pack, Larsen & Toubro, HCL Technologies, Infosys, Wipro, Asian Paints, HDFC, HDFC Bank, Axis Bank were lagging behind.

In contrast, ICICI Bank, NTPC, Kotak Mahindra Bank, TCS and Ultratech Cement were among the beneficiaries. TCS will announce its financial results later in the day.

Binod Nair, head of research at Geojit Financial Services, said:

Global stock markets were also down due to concerns over inflation, expectations of an aggressive rate hike by the US Federal Reserve and weak growth due to the geopolitical situation.

US Fed officials have indicated that they are considering raising the benchmark rate to double the normal amount at an upcoming meeting.

They further hinted that they could tighten the Fed’s bond holdings, which could increase the rate of commercial debt.

In Asia, markets in Hong Kong, Seoul, Shanghai and Tokyo have declined. European stock markets were also down due to the closure of technology stocks. Stocks in the U.S. ended mostly lower on Friday.

International oil benchmark Brent crude fell 38 percent to USD 100.3 per barrel. Foreign institutional investors continued to offload shares worth Rs 575.04 crore on Friday, according to exchange data.

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