On Thursday, Indian equity benchmarks fell for the third day in a row, owing to widespread selling pressure as investor sentiment deteriorated due to concerns about rising inflation following a higher-than-expected rise in US consumer prices. During intraday trading, the Sensex fell as much as 697 points, and the Nifty 50 index briefly fell below its key psychological level of 17,800. The Sensex finished 433 points lower at 59,920, while the Nifty 50 index dropped 144 points to 17,874. On the Nifty 50, SBI, ONGC, SBI Life, Bajan Finserve, and Tech Mahindra were among the top drags.
The selling pressure was widespread, as thirteen of the National Stock Exchange's 15 sector indices ended lower, led by the Nifty Realty index, which fell more than 2 percent. The Nifty PSU Bank, Bank, Pharma, FMCG, Private Bank, Auto, and Financial Services indexes all dropped between 1 percent and 1.9 percent. The Nifty Metal and Consumer Durables indices, on the other hand, managed to close in the black. Mid- and small-cap stocks were also under pressure, with the Nifty Midcap 100 index falling nearly 1 percent and the Nifty Smallcap 100 index falling 0.5 percent.
Fears of inflation weighed on Asian stocks on Thursday, while the dollar rose to an almost 16-month high after US consumer prices rose at their fastest rate since 1990, bolstering the case for faster Fed policy tightening.