Sensex Nifty join global selloff on spike in crude oil prices FII outflows

    Mumbai, Jan 13 (PTI) Equity benchmark Sensex cracked over 1,000 points to dive below the 77,000 level on Monday, tracking heavy selling in global equities and a spike in international crude prices.
    A strong US jobs data erasing early rate cut expectations, the rupee logging its steepest single-day fall in nearly two years and unabated foreign fund outflows also dampened investors' sentiment.
    Falling for the fourth straight session, the 30-share BSE benchmark Sensex tanked 1,048.90 points or 1.36 per cent to settle at 76,330.01. During the day, it plunged 1,129.19 points or 1.45 per cent to 76,249.72.
    As many as 3,562 stocks declined, while 555 advanced and 131 remained unchanged on the BSE.
    Also, 508 stocks hit their 52-week lows while 120 stocks reached the one-year high level.
    The NSE Nifty dropped 345.55 points or 1.47 per cent to close at 23,085.95.
     "The global markets witnessed a significant sell-off, prompting a similar response in domestic markets due to strong US payroll data suggesting fewer rate cuts in 2025. This has strengthened the dollar, driven up bond yields, and made emerging markets less attractive. Recent GDP downgrades and slowing earnings amidst higher valuations are weighing heavily on market sentiment," Vinod Nair, Head of Research, Geojit Financial Services, said.
    From the 30-share blue-chip pack, Zomato cracked nearly 7 per cent. Power Grid, Adani Ports, Tata Steel, NTPC, Tata Motors, Tech Mahindra, Mahindra & Mahindra, Asian Paints, Sun Pharma and UltraTech Cement were the other major laggards.
    In contrast, Axis Bank, Hindustan Unilever, Tata Consultancy Services and IndusInd Bank were the gainers.
     The BSE midcap gauge dropped 4.17 per cent, and smallcap index tanked 4.14 per cent.
    All BSE sectoral indices ended lower. Realty slumped 6.59 per cent, utilities (4.38 per cent), services (4.35 per cent), power (4.23 per cent), industrials (4.09 per cent), consumer discretionary (4.04 per cent), consumer durables (3.96 per cent) and commodities (3.69 per cent).
    Meanwhile, retail inflation slowed to a four-month low of 5.22 per cent in December against 5.48 pc in November, mainly due to easing of prices in food basket, according to government data released on Monday.
    Globally, equity markets showed a bearish trend on Monday after US stocks fell on the positive job market, triggering inflation worries.
    In Asian markets, Seoul, Shanghai and Hong Kong settled lower. Markets in Japan were closed for a holiday.
    European markets were quoting in the red. US markets ended in the negative territory on Friday.
    "US imposing sanctions on Russian oil exports pushed the rupee to a fresh low against the dollar, which in turn triggered massive correction in domestic equity markets as overseas investors continued to desert the local share market. Wide-spread selling across the sectors fuelled along with massive exits in mid and smallcap stocks further worsened the sentiment.
    "Rising crude oil prices would raise concerns of a spike in domestic inflation, which could further delay any rate cut hopes from the RBI in the near to medium term," Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd, said.
    Crude prices shot up more than USD 1 a barrel after US President Joe Biden's administration tougher sanctions against Russia's energy sector over its war with Ukraine.
    Global oil benchmark Brent crude jumped 1.43 per cent to USD 80.90 a barrel.
    The rupee logged its steepest single-day fall in nearly two years and ended the session 58 paise down at its historic low of 86.62 (provisional) against the US dollar on Monday.
     Foreign Institutional Investors (FIIs) offloaded equities worth Rs 2,254.68 crore on Friday, according to exchange data. Foreign investors have withdrawn Rs 22,194 crore from Indian equities so far this month.
     India's industrial production (IIP) growth accelerated to a six-month high of 5.2 per cent year-on-year in November 2024, riding on the increased festive demand and pick up in manufacturing sector, according to the official data released on Friday.
    The BSE benchmark Sensex declined 241.30 points or 0.31 per cent to settle at 77,378.91 on Friday. The Nifty dropped 95 points or 0.40 per cent to 23,431.50.

(This story has not been edited by THE WEEK and is auto-generated from PTI)