Key indices slip into red on profit booking

Mumbai: Benchmark stock indices BSE Sensex and NSE Nifty tumbled nearly one per cent on Wednesday due to profit booking in banking, financial and IT stocks after a recent rally. The 30-share BSE Sensex plunged 537.22 points or 0.94 per cent to end at 56,819.39 as 24 of its stocks declined. During the day, it tanked 772.57 points or 1.34 per cent to touch a low of 56,584.04. The broader NSE Nifty declined by 162.40 points or 0.94 per cent to 17,038.40 points. 39 of NSE-50 constituents ended in the red.

"Market continued to be gripped by high volatility following a heavy selloff in the global markets led by elevated energy crisis and weak Chinese economic outlook underpinned by prospects of US rate hikes. Investors are weighing the possibility of a global slowdown due to monetary tightening by central banks, lockdown in China and Russia -Ukraine war. This has resulted in an outflow of funds from equity markets to safe havens. This (LIC IPO) is right sized, considering the capital market environment and will not crowd out capital supply given the current market environment," said Vinod Nair, head (research) at Geojit Financial Services.

Shivam Bajaj, Founder & CEO at Avener Capital, said: "The revision in the LIC IPO valuation amidst the volatile environment demonstrates the keenness of the government to deliver on the IPO. The revised IPO valuation can potentially unlock a favourable opportunity for investors towards wealth creation. Global headwinds like the Russia-Ukraine crisis, China's lockdown, inflation worries and now earnings are causing erratic swings in markets across the globe including India." Foreign institutional investors (FIIs) continued their selling spree, offloading shares worth Rs 1,174.05 crore on Tuesday, according to stock exchange data. In the broader market, the BSE midcap gauge declined 0.88 per cent and smallcap index dipped 0.61 per cent. Among BSE sectoral indices, power fell the most by 1.86 per cent, followed by utilities (1.81 per cent), telecom (1.72 per cent), finance (1.40 per cent) and oil and gas (1.24 per cent). Metal was the only gainer with a marginal gain of 0.02 per cent.