The Indian equity benchmarks continue to witness intense selling pressure mirroring losses in other global markets as a rout in global bond markets sent yields flying and spooked investors amid fears the heavy losses suffered could trigger distressed selling in other assets. The Sensex fell as much as 1,848 points or 3.6 per cent and Nifty 50 index plunged 3.6 per cent to hit an intraday low of 14,554.
As of 12:57 pm, the Sensex was down 1,619 points or 3.2 per cent to 49,419 and Nifty tumbled 3.3 per cent or 502 points to 14,595.
"Low interest rates made the rally possible form levels of 7,500 and the Nifty has doubled from those levels in last 12 months now signs of interest rate reversal are seen which means liquidity will dry up and easy money will not sustain. Nifty can go down 13,900 levels in the near term given the high valuations Nifty is trading at," A K Prabhakar, head of research at IDBI Capital told NDTV.
In a sign the gloomy mood will reverberate across markets, European and U.S. stock futures were a sea of red. Eurostoxx 50 futures lost 1.7 per cent while futures for Germany's DAX and those for London's FTSE dropped 1.3 per cent each.
MSCI's broadest index of Asia-Pacific shares outside Japan slid more than 3 per cent to a one-month low, its steepest one-day percentage loss since May 2020.
Selling pressure was visible across the board as all the 11 sector gauges compiled by the National Stock Exchange were trading lower led by the Nifty Bank and Private Bank indexes nearly 5 per cent plunge. Nifty Auto, Financial Services, IT, Metal, PSU Bank and Realty indexes also fell between 2-5 per cent.
Mid- and small-cap shares were also witnessing selling pressure as Nifty Midcap 100 index fell 2 per cent and Nifty Smallcap 100 index dropped 1.6 per cent.
All shares in the Nifty 50 basket, barring Sun Pharma, were trading lower led by ICICI Bank's 5.2 per cent decline. Kotak Mahindra Bank, Axis Bank, Mahindra & Mahindra, Bajaj Finserv, JSW Steel, GAIL India,, HDFC Bank, IndusInd Bank, Bajaj Finance, HDFC, Power Grid, Hero MotoCorp, Larsen & Toubro, ONGC, Adani Ports, Tata Steel and State Bank of India also fell between 3-5 per cent.
The overall market breadth was extremely negative as 1,913 shares were declining while 852 were advancing on the BSE.