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Sensex Falls 485 Points, Banks & Metals Drag

Ruchit Purohit Jul 08, 2021

Sensex and Nifty nosedived on Thursday, July 8 amid a selloff in the Banking, Metal, and Pharma stocks coupled with a weak trend in its Asian peers. The BSE Sensex dipped 485.82 to close at 52568.94, and the Nifty was down 151.80 points at 15727.90.

Shares of ICICI Bank, SBI, Sun Pharma, and Tata Steel were the top drags for the BSE Sensex on Thursday as they declined between 1-2 per cent each. Overall, in the BSE Sensex, 23 shares ended in the red amid volatility. The India volatility index also surged to 14.00. Volatility Index is a measure of the market's expectation of volatility over the near term. From the best bid-ask prices of NIFTY Options contracts, a volatility figure (%) is calculated which indicates the expected market volatility over the next 30 calendar days.

As widespread selling took over the market, almost all sectors ended in the red except for the IT sector. The Banking index declined over 1.5 per cent, while the Metal index plunged over two per cent in the day's trade. Shares of JSW Steel, Jindal Steel, and SAIL were the top drags in the Metal index declining between 3-4 per cent each.

What led the markets to fall Today?

Experts were of a view that the markets today took note of a private report that suggested about possibilities of India's retail inflation surging to a seven-month high in June on rising food and fuel prices. Adding to it, the Fitch rating agency also reversed their estimated growth outlook for India from 12.8 per cent to 10 per cent for FY22.

Narendra Solanki, Head of Equity Research (Fundamental), said, "Investors were concerned with a private report stating that India's retail inflation likely to accelerate to a seven-month high in June on rising food and fuel prices, staying above the Reserve Bank of India's comfort zone for a second straight month."

In the overall market breadth, nearly 1277 shares advanced, 1648 shares declined, and 112 shares remained unchanged.