Sensex sinks 927 pts to 3-week low; geopolitical, rate hike worries loom

PTI

Mumbai, February 22

Benchmark Sensex tanked 927 points while the broader Nifty settled at a four-month low on Wednesday due to an intense selling in heavyweight stocks triggered by geopolitical and inflation concerns.

All Adani Group shares in red

• Shares of Adani Group firms fell sharply on Wednesday, with all the listed firms ending in the negative territory
• The 10 listed firms suffered a combined erosion of Rs 51,294.04 crore in their market valuation
• Adani Enterprises tumbled 10.43%, followed by Adani Ports (6.25%), Adani Power (5%), Adani Transmission (5%), Adani Total Gas (5%), Adani Green Energy (4.99%), Adani Wilmar (4.99%) and Ambuja Cements (4.92%).
• NDTV dropped 4.13% and ACC fell 3.97%

Losses in global equities and across-the-board selling ahead of the monthly expiry of derivatives also hit the investor sentiment, dragging down the key indices for a fourth straight day.

The BSE Sensex tumbled 927.74 points to settle at 59,744.98, the lowest closing level since February 1. As many as 29 of the Sensex stocks declined. During the day, it tanked 991.17 points to 59,681.55.

The 50-issue NSE Nifty declined 272.40 points to end at a four-month low of 17,554.30 with 47 of its constituents ending in the red. In the broader market, the BSE midcap gauge declined by 1.16% and smallcap index fell by 1.09%.

As many as 266 stocks hit their 52-week low levels on the BSE. Investors’ wealth eroded by Rs 6.97 lakh crore (Rs 6,97,102.05 crore) in four days of decline. The total market valuation stands at Rs 2,61,33,883.55 crore.

“Resurgence of the cold war between US & Russia has brought apprehension in the market. Although it should be a short-term effect, the fear of sanctions against Russia and its degree of implication on the economy, especially on food and oil exports, is adding to the anxiety. The market is just recovering from the pandemic, and high interest & inflation are the headwinds in the background.

“It is presumed that this war will be fought on an economic front, limiting its effect on strong economies like the US & India. Awaiting the release of Fed and RBI minutes are the other major elements that kept investors on the sidelines,” said Vinod Nair, Head of Research at Geojit Financial Services.