Here's Your 10-Point Cheatsheet To This Big Story:
Investors have lost Rs 9.73 lakh crore in wealth in a four-day sharp plunge on Dalal Street, with the market capitalisation (m-cap) of BSE-listed companies falling to Rs 270 lakh crore from Monday's Rs 280 lakh crore mark.
"FIIs (Foreign Institutional Investors) turned out to be a net seller in the January month till date in India. Inflationary pressure, monetary policy tightening, rising bond yields, higher crude oil prices are some key challenges for the global markets. In addition to global factors, the domestic markets would track the third quarter (Q3FY22) results, management commentary and Union Budget 2022-23," Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd said.
Expectations that the U.S. Federal Reserve will move more quickly to hike interest rates to combat inflation hit the global indices hard. The sell-off hit bonds as well, pushing U.S. Treasury yields to two-year highs. Higher yields and interest rate hikes tend to make risky assets like emerging market equities less attractive, leading to outflows of funds from the region.
Back home, mid- and small-cap shares finished lower as Nifty Midcap 100 index fell 2.39 per cent and Nifty Smallcap 100 index fell 2.28 per cent.
14 out of the 15 sector gauges -- compiled by the National Stock Exchange -- settled in red. Nifty PSU Bank and Nifty Consumer Durables Pharma underperformed the index by diving 3.05 per cent and 2.96 per cent, respectively. Nifty FMCG (Fast-moving consumer goods) managed to finish 0.36 per cent higher.
On the stock-specific front, Bajaj Finserv was the top Nifty loser as the stock cracked 5.09 per cent to Rs 16,379.95. Tech Mahindra, Coal India, Shree Cement and Divi's Lab were also among the laggards.
In contrast, Bajaj Auto, Hindustan Unilever, Maruti Suzuki India, HDFC Bank and Hero MotoCorp were among the gainers.
The overall market breadth stood weak as 1,037 shares advanced while 2,339 declined on BSE.
On the 30-share BSE platform, Bajaj Finserv, TechM, Tata Steel, Bharti Airtel, IndusInd Bank, L&T, Infosys and Bajaj Finance attracted the most losses with their shares sliding as much as 5.37 per cent.
HUL, Maruti, HDFC twins (HDFC and HDFC Bank), Nestle, Kotak Mahindra Bank, and TCS were among the gainers on BSE.