Sensex Finishes Over 600 Points Lower, Nifty At 24,609 Amid Broad-based Selling

Stock Market News: Headline indices declined significantly on May 22 as the Sensex slumped 644.64 points or 0.79 per cent to 80,951.99. The Nifty 50 index also declined 203.75 points or 0.82 per cent. The headline indices fell amid broad-based selloffs and weak global cues.

ONGC, M&M and Hindalco Shares Emerge As Top Drags

On May 22, 39 of the 50 constituents of the Nifty 50 closed in the red. Shares of ONGC Ltd, Mahindra & Mahindra and Hindalco Ltd emerged as top drags closing lower by as much as 2.65 per cent. Notably state-owned company ONGC’s shares declined the most among the Nifty pack. On the other hand, 11 constituents of the Nifty 50 bucked the trend amid selloffs to close higher by 1.76 per cent. Shares of IndusInd Bank, JSW Steel and Bajaj Auto emerged as top-gainers among Nifty 50 stocks.

Broader Markets Close Lower

The Nifty Auto and the Nifty FMCG were the worst hit among the sectoral pack as they ended lower by as much as 1.44 per cent. The broader market indices also bore the brunt of the selloffs with the Nifty MidCap 100 and the Nifty SmallCap 100 closing lower by 0.52 per cent and 0.26 per cent lower. The India VIX also declined in today’s trade by 1.65 per cent, indicating reduced volatility.

Global Markets

On May 22, the S&P 500 and the Nasdaq Composite closing lower by up to 1.61 per cent. At the time of writing European indices traded in the red with the FTSE 100, CAC 40 and DAX Performance Index ending lower by as much as 0.97 per cent. Asian indices also traded lower with the Nikkei 225, Hang Seng and Shanghai Composite trading lower by as much as 0.85 per cent.

Primary Market Action

The mainboard issue of Borana Weaves Ltd closed for bidding on May 22. Shares of Borana Weaves Ltd will list on the NSE and BSE on May 27 tentatively. On the other hand, Unified Data-Tech Solutions IPO opened for subscription. The company plans to raise Rs 144.47 crore through an offer for sale consisting of 52.92 lakh shares.

Market Cues

D-street is likely to factor in the impact of a weak 20-year US government bond auction over the subsequent few sessions. On the other hand, growing US bond yields for (5-year, 10-year, and 30-year US government bonds) are also likely to impact D-street. Notably, an increase in US bond yields generally causes outflows from the securities markets of developing countries as investors seek relatively safer investment opportunities in US government bonds.