Sensex ends below 57,200 as global woes continue to weigh on investor sentiment

In yet another disappointing session for D-Street investors, the domestic benchmark indices extended their losing run to the 4th straight session on Monday. Except for IT stocks, selling pressure was seen across all sectors.

The 30-share Sensex fell 953.70 points to end at 57,145.22. Its broader peer, Nifty50, dropped 311 points and closed just near the above 17,000 mark.

was the top loser from the 30-share pack, falling 5.49 per cent to Rs 8,830.60, declined 4.22 per cent, was down 3.96 per cent, and declined 3.40 per cent. , , M&M and were among the stocks that settled with cuts.

On the other hand, HCLTech rose 1.28 per cent to Rs 906.90. surged 1.14 per cent, followed by , up 1.06 per cent, and rose 0.40 per cent.

Sectorally, the Nifty Metal index declined 4.13 per cent, while Nifty Auto plunged 3.81 per cent. Nifty Realty and Oil & Gas also closed lower.

Nifty Midcap50 and Smallcap50 fell 3.02 per cent and 3.52 per cent, respectively. Earlier in the day, Asian markets ended higher, South Korea’s Kospi, Japan's Nikkei and China’s Shanghai Composite rose by 3.02 per cent, 2.66 per cent and 1.20 per cent, respectively.

The market capitalisation of all listed companies on BSE declined Rs 6.59 lakh crore to Rs 270.05 lakh crore from Rs 276.64 lakh crore on Thursday, as Sensex fell over 700 points.

“We believe investors should avoid taking riskier positions in the near term as the volatility is likely to continue for some time. Investors should rather use this volatility to accumulate good quality stocks with strong growth visibility and solid fundamentals, said Mohit Nigam, Head - PMS, Hem Securities.

Neeraj Chadawar, Head - Quantitative Equity Research, Axis Securities, said that after a hawkish US Fed stance, we are observing weakness in the global market on an expectation of a continuation of rate hikes in the remaining two FOMC meetings of 2022. In that context, term performance was likely to be range-bound due to a stronger dollar.

Now the market is eyeing the RBI monetary policy scheduled this week. We recommend investors avoid riskier bets this week as volatility is likely to continue in the near term, Chadawar said.

Further, the market is eyeing the upcoming earning season and the festival demand, which will likely drive the market fundamentals. “We recommend investors to use this volatility in the coming days in a phased manner to build a position with a view of 12-18 months in quality companies where earnings visibility is very high,” Chadawar added.