The market remained under pressure in morning trade, though it recovered a bit from day’s low. All sectoral indices except IT slipped into red.
The 30-share BSE Sensex was down 398.34 points or 1.38 percent at 28398.91 and the 50-share NSE Nifty fell 129.10 points or 1.46 percent to 8737.60. About four shares declined for every share advancing on the BSE.
Infosys outperformed, extending gains further. The stock was up over a percent whereas ICICI Bank, HDFC, Tata Motors, Axis Bank, ITC, L&T and SBI were top contributors to Sensex’s fall, down 1-3 percent.
Global markets fell sharply amid concerns central banks will become less accomodative and as investors cautious ahead of Federal Reserve’s policy meeting next week.
Andrew Sheets of Morgan Stanley said the brokerage house thought the risks of a Fed rate hike this year are manageable, and would be more concerned that the European Central Bank disappointed dovish expectations.
Sheets continued to expect developed markets and China growth to disappoint, with the rest of emerging markets doing relatively better.