Sensex plunges 1,628 points in sharp selloff, Nifty dips below 21,600

The domestic equity market indices witnessed a sharp selloff on Wednesday as banks bled following the Q3 results by HDFC Bank. Tensions in the Middle East and dimming rate cut hopes by the US Fed accentuated investors' fears, especially after a sharp rally to record high levels.At close, the Sensex was down 1,628.01 points or 2.23 percent at 71,500.76, and the Nifty was down 460.35 points or 2.09 percent at 21,571.95.
Stocks and Sectors
HCL Technologies, SBI Life Insurance, Infosys, LTIMindtree and TCS were the biggest gainers on the Nifty, while losers included HDFC Bank, Tata Steel, Kotak Mahindra Bank, Axis Bank and Hindalco Industries.
On the sectoral front,except Information Technology, all other indices ended in the red with bank index down 4 percent, and auto, metal, oil & gas realty down 1-2 percent. BSE Midcap and Smallcap indices shed 1 percent each.
On 17 Jan'24,the Indian rupee depreciated 3 paise to 83.15 against the US dollar on Wednesday, tracking a strong greenback against major rivals overseas and massive selling in domestic equity markets. However, inflow of foreign funds in domestic equity markets and softening crude oil prices in the international markets resisted a steep fall in the domestic currency, forex traders said.
Experts Take:
Market experts have recommended six stocks to buy for Wednesday- Westlife Foodworld, Pidilite Industries, Tata Steel, Asian Paints, IDBI Bank, and JM Financial.

(Writer is a Finance Research Analyst, based in Gandhinagar, Gujarat)