Key indices plunge amid inflation concerns
The benchmark equity indices, BSE Sensex and NSE Nifty50, ended down by over 1 per cent each to settle in the red on Tuesday. The BSE Sensex closed at 78,675.18, down 820.97 points or 1.03 per cent from its previous close. Similary, the NSE Nifty50 settled at 23,883.45, down 257.85 points or 1.07 per cent from its previous close.
The volatility index India VIX jumped by 2.24 per cent to 14.59, indicating a rise in market volatility.
“The Indian benchmark indices continued their downward trend for the fourth consecutive session as investor caution intensified ahead of India’s key inflation data release. The Nifty50 declined by 257 points, or 1.07 per cent, closing below the critical 24,000 mark, while the BSE Sensex dropped over 800 points to settle at 78,675. In addition to inflation concerns, weaker-than-expected Q2 earnings and sustained foreign outflows — amounting to nearly 22,156 crore so far this month — contributed to the subdued investor sentiment,” said Vishnu Kant Upadhyay, AVP - Research and Advisory at Master Capital Services Ltd.
According to analysts, the selling pressure was widespread.
