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Sensex Drops Over 600 Points, Nifty Below 17,700 As Auto, Tech Stocks Drag

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Sensex Drops Over 600 Points, Nifty Below 17,700 As Auto, Tech Stocks Drag

The Sensex and Nifty were set to end the holiday-shortened week nearly 2 per cent lower on Thursday, as losses in automobile and information technology stocks weighed on markets, while digital payments company Paytm plunged in a tepid market debut.

By 12:43, the blue-chip NSE Nifty 50 index had fallen 1 per cent to 17,709, while the benchmark S&P BSE Sensex had lost 0.92 per cent to 59,470.

Both the indexes have struggled this week, hurt a combination of rising inflation worries globally, valuation concerns, and an end to the domestic September-quarter earnings season.

“Because of the extraordinary monetary accommodation provided by global central banks… the valuations of many businesses (have become astronomical),” said Ajay Bodke, an independent market analyst.

Broader global stock markets also slipped as rising inflation worries clouded the outlook for interest rates and growth.

In Mumbai trading, Paytm’s shares tanked as much as 26.2 per cent in their stock market debut, whose initial public offering of 183 billion rupees is India’s biggest.

The Nifty Auto Index fell 2.12 per cent and was on track to snap two straight sessions of gains. Tata Motors lost 4.2 per cent to be the top percentage loser on the Nifty 50.

The Nifty IT index was down 1.66 per cent and was set to break a four-day winning streak. HCL Technologies fell 2.8 per cent.

Sapphire Foods India, a domestic franchisee of KFC and Pizza Hut operator Yum Brands, gained 4.1 per cent in its market debut.

Shares of oil-to-metals conglomerate Vedanta fell 5.6 per cent. The company on Wednesday said it had constituted a board committee to evaluate strategic measures.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

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