By Malvika Gurung
Investing.com -- Indian equity benchmark indices continued their downward streak, ending lower for the fourth consecutive session on Monday, dragged largely by weaknesses in IT and financial stocks.
A poor start to the earnings season in heavyweight stocks like Infosys (NS: INFY ) and HDFC Bank (NS: HDBK ) has weighed negatively on investors’ sentiments amid the already heightened inflation figures, and prolonged Russia-Ukraine disturbances, leading to skyrocketed fuel and commodity prices.
Benchmark gauges Nifty 50 declined 1.7% and BSE Sensex lost 1,172.19 basis points or 2.01% on Monday. Disappointing quarterly results of HDFC Bank and Infosys last week hurt investor confidence further, as the two stocks alone made up a fall of over 500 points in Sensex.
In the morning session itself, investors on Dalal Street were wiped off over Rs 3.39 lakh crore of their wealth, after the domestic market opened after a long holiday on Monday.
In a note provided by Rahul Shah, Co-Head of Research at Equitymaster to Investing.com, he said, “If you look at the data, Infy along with the HDFC (NS: HDFC ) twins contributed 2/3rds to the overall market decline of nearly 1,200 points on the Sensex. While there are stocks as well as sector-specific reasons for the poor performance of these counters, the broader outlook isn't encouraging either.”
He added, “A new threat of supply chain disruption has emerged following the rise in Covid cases in China. Add this to the already present challenges like inflation, geopolitics and rate hikes and you'll know why markets are behaving the way they are. While no one knows whether this fall will worsen, it may be a good idea to be very selective in stock selection and choose only the ones with strong fundamentals and reasonable valuations."
On the sectoral side, index Nifty IT plunged 4.58%, its steepest single-day jump since Feb 24, led by poor Q4 FY22 results of Infosys, which dragged other IT shares down too.
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