All sectoral indices in red as markets see sharp selloff ahead of GDP data

Mumbai, Feb 28 (IANS) After a positive opening on Wednesday, Nifty soon entered into the negative territory dragged by profit booking in index heavyweights, said Siddhartha Khemka, Head of Retail Research at Motilal Oswal Financial Services.

While the Nifty was down 247.20 points, or 1.11 per cent, at 21,951.15 on Wednesday, the Sensex ended the day at 72,304.88, down 790.34 points, or 1.08 per cent. The broader market saw a sharp selloff down 2 per cent, Khemka said.

All the sectors ended in red with selling seen in oil & gas, PSU bank, realty, and auto, all down 2 per cent each. The volatility index India Vix surged 4 per cent above the 16 level, he said.

Markets turned cautious ahead of the release of India’s Q3 GDP data on Thursday and the FNO monthly expiry.

“Further, US Q4 GDP preliminary reading and core PCE data would keep the investors busy. We expect the market to remain volatile amid key events,” Khemka said.

Vinod Nair, Head of Research at Geojit Financial Services, said the Indian markets were jittery mirroring weak global markets. Global investors are awaiting key US economic data like personal consumption expenditure.

Turmoil in China’s property sector further impacted the Asian market trend. Profit booking weighed on Indian markets, fuelled by concerns about India’s Q3 GDP growth potentially slowing to 6.6 per cent from 7.6 per cent in Q2. Rate-sensitive sectors faced pressure, contributing to broader market underperformance, led by FIIs selling, Nair said.

–IANS

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