Sensex, Nifty drop over 1% after pullback rally fizzles

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Bengaluru, June 22 Indian shares fell more than 1 per cent on Wednesday, with the metal index plunging over 4per cent, while global investors remained concerned over monetary tightening policy and recession fears.

The NSE Nifty 50 index fell 1.09 per cent to 15,468.5, while the S&P BSE Sensex dropped 0.9 per cent to 52,026.81. Both indexes had clocked their best session in three weeks on Tuesday.

“Yesterday’s rally was a pullback in a bearish market. But there was not enough steam to sustain the momentum. There was a lot of short covering as well,” said V K Vijayakumar, chief investment strategist at Geojit Financial Services.

India’s 10-year benchmark yield was down marginally to 7.42per cent, from its previous close of 7.48per cent.

Metal stocks declined after their short rebound on Tuesday, as a stronger US dollar and rising supply concerns sent London copper prices down more than 1 per cent.

The Nifty Metal index tumbed 4.5 per cent, with Hindustan Copper sinking 8.4 per cent.

The Nifty energy index lost 1.6 per cent, with Oil and Natural Gas Corp and Gas Authority of India down 4 per cent, each.

Brent crude was down at $113.32 per barrel, after a push by US President Joe Biden to bring down soaring fuel costs.

Asian stocks fell in volatile trade, failing to extend an overnight Wall Street rally, while the Japanese yen hit a fresh 24-year low against the dollar.

Hero MotoCorp and Bajaj Auto were among the gainers on the Nifty 50 index.

Jain Irrigation Systems jumped nearly 17 per cent, after the company said on Tuesday it would sell 78 per cent stake in its international irrigation business to Temasek-owned micro-irrigation company Rivulis.

Published on

June 22, 2022

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