The domestic benchmark indices opened in red and plunged further as weak global cues continue to drive market sentiment. Central banks worldwide have become more hawkish about their commentary on monetary policy to rein in inflation, causing the financial market some discomfort.
The BSE Sensex opened at 61,534 points and currently fluctuating between the range of 61,500 to 61,700. To be precise, the Sensex is trading at 61,661 as of 1:30 PM, which is 133 points lower than the previous close of 61,799 points.
NSE Nifty-50 also opened mildly in red at 18,319 points and currently fluctuating between the range of 18,200 to 18,400 points. It is trading at 18,365 points, which is about 50 points lower than the previous close of 18,414 points.
Nagaraj Shetti, Technical Research Analyst at HDFC Securities, said, "A long bear candle was formed on the daily chart on Thursday, post small upside bounce of few sessions. Technically, this pattern indicates a sharp downward reversal in the market after the formation of lower top on Wednesday at 18696 levels. This is not a good sign and indicates more weakness in the short term."
Wall Street also sharply fell after the rate hike of 50 bps by the fed and chairperson Powell's speech on the course of future monetary actions. The Dow Jones Industrial Average gave up 764 points or 2.25%, while S&P 500 lost 100 points or 2.5% and Nasdaq Composite sank 360 points or 3.2%.
Commenting on the recent bearish trend in the financial market globally, V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said, "India is likely to be less impacted by the bearish trend but investors can wait for the global markets to stabilize before making fresh commitments in this overvalued market. Moving some money to fixed income makes sense since fixed income returns are turning attractive."