Benchmark indices continued their downtrend for the fifth session on Thursday, with the Sensex tumbling over 1000 points in early trade, tracking weak global trends and selling in index majors Reliance Industries and HDFC Bank.
The 30-share BSE Sensex tanked over 1000 points to hit an intraday low of 53,047.75. The NSE Nifty declined over 300 points to 15,848.10.
"Asian stocks fell Thursday after elevated US inflation bolstered the case for aggressive monetary tightening and sparked a slide on Wall Street," said Deepak Jasani, Head of Retail Research, HDFC Securities.
"Indian markets are seeing turbulent swings as investors continue to be concerned about rising interest rates, fears about slowing economic growth, and additional tightening measures in China," said Mohit Nigam, Head - PMS, Hem Securities.
"In the previous seven trading sessions, the Nifty has fallen by 6.5 percent. Even attitudes were shaky, as foreign investors dumped $1.82 billion in Indian shares so far this month. In these situations, investors should exercise caution and take advantage of any declines in fundamentally sound companies," he added.
"Any breach below the 16,000 mark could open the possibility of re-testing the previous swing low of 15700 odd levels," noted Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel One Ltd.
He added that aggressive bets should be avoided till the time global nervousness subsides completely.
V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services noted that inflation continues to be a major headwind for markets.
"Consumer inflation in the US in April coming at 8.3 per cent reinforces market's concern about aggressive rate hikes by the Fed and the possibility of a US recession in 2023," he said.
"Even though domestic institutional investors (DII) buying is more than foreign institutional investors (FII) selling now, that is not enough to lift sentiments in the market since the macro headwinds are strong," Vijayakumar added.
(With inputs from PTI)