Bears dominated on Dalal Street last week with the benchmark equity indices falling more than three per cent amid bets on the US Federal Reserve’s faster rate hikes in 2022.
The 30-share BSE Sensex plunged 2,185.85 points, or 3.57 per cent, to 59,037.18 on January 21 against 61,223.03 on January 14. Likewise, the 50-share NSE Nifty index cracked 638.60 points, or 3.50 per cent, to 17,617.15 during the same period.
Here’s a look at the updates of the market action on BSE and NSE today.
9:40 am: Zomato shares tank 10%
Shares of Zomato Limited crashed 10 per cent to hit an all-time low of Rs 100.75 on BSE.
According to Abhay Agarwal, Founder, Piper Serica, the sharp correction witnessed in the recently listed Internet and tech stocks like Zomato are driven primarily by more than 10% correction in Nasdaq over the last month. With an increase in interest rates, tech investors seem to be taking money off the table for the time being.
“With all technical indicators flashing red we do not see any sharp rebound in tech stocks. At the same time, it is a good opportunity for long-term investors to add stocks like Zomato to the portfolio since it is a leader in a fast-growing industry that has only one other player. Also, since the company is well funded and has profitable unit-level metrics, we are not worried about the correction in valuation,” he added.
9:16 am: Market opening
Indian benchmark indices opened lower amid weak global cues. At 09:16 hours, the 30-share BSE index was trading 228 points lower at 58,808.81, and the broader NSE Nifty was down 70 points to 17,546.55.
Asian Paints was the top loser in the Sensex pack, declining over 2 per cent, followed by Tech Mahindra, Dr Reddy, HCL Tech, Wipro and Infosys.
Maruti Suzuki and ICICI Bank were among the top Sensex gainers.
