Indian share markets remained in the bear's grip throughout the trading session today tracking extremely weak global cues.

Benchmark indices extended losses as persistent foreign fund outflows and a spurt in crude oil price damped sentiment.

At the closing bell, the BSE Sensex plummeted 1,416 points, ending 2.6% lower.

Meanwhile, the NSE Nifty plunged 431 points, ending at 15,809.

ITC and Dr. Reddy's Laboratories were among the top gainers today.

HCL Technologies, Wipro, and Infosys were among the top losers today.

The broader markets ended deep in red as the BSE Mid Cap index slipped 2.7% while the BSE Small Cap index plunged 2.3%.

All sectoral indices ended in red with stocks in the IT sector and the metal sector witnessing most of the selling.

Shares of ITC and MRPL hit their 52-week high today. ITC's results beat estimates as it reported a consolidated net profit of Rs 42 bn, which is 11.7% higher YoY.

Outside the home ground, Asian share markets ended deep in red as investors fretted over rising global inflation, China's zero-Covid policy, and the Russia-Ukraine war.

At the close in Tokyo, the Nikkei 225 plunged 1.9%, while the Hang Seng dived 2.5%. The shanghai composite rose marginally by 0.4%.

The SGX Nifty was trading 2.7% lower at the time of writing.

The rupee is trading at 77.68 against the US$.

Gold prices are currently trading up by 0.4% at Rs 50,423 per 10 grams while silver is trading flat at Rs 60,762 per kg.
 

Here are five factors behind today's Stock market meltdown:

Global sell-off: US markets fell to a 2-year low amid concerns about economic growth. Deteriorating macro sentiments such as soaring inflation, recession fears, and the prospect of the US Fed is even more hawkish continues to dampen investor sentiment.

RBI minutes: Yesterday, the central bank released the emergency meeting minutes held in May where one of the rate-setting panel members was heard pressing for an immediate repo rate hike of more than 100 basis points.

All the members later voted for an off-cycle hike which some felt was necessary to avoid stronger actions going forward.

FII sell-off: FIIs have sold equity shares worth Rs 379.4 bn in May so far. They continue to be net sellers for eight consecutive months. The offloading has resulted in the rupee hitting a record low after weakening for five sessions.

Since April 2021, FIIs have been sellers in every month except three and they have sold Indian shares worth over US$ 20 bn.

Retail investors made up for this selling with their enthusiastic buying. But the selling by FIIs meant that retail investors were the only large buyers in the market.

However, amid the recent sell-off, there are some bluechip stocks where FIIs are increasing exposure.

Inflation concerns: Quarterly earnings reported by top companies have elevated concerns as inflation can be seen eroding profits. This does not help paint a positive picture for investors.

Sectoral impact: Heavy selling was seen in stocks from the IT sector and the metal sector. The Nifty IT index fell 6% intraday, tracking the tech sell-off and the anticipated economic slowdown in the US markets. Mid-cap IT stocks have corrected 40-50% in the recent market meltdown.

Adding to the heat, JP Morgan downgraded India's IT services industry, citing soaring inflation, supply chain issues and the hit from the Ukraine war will bring an end to the growth boom the industry enjoyed during the pandemic.

In news from the pharmaceutical sector, the board of Dr. Reddy's Laboratories has recommended a final dividend of Rs 30 per share for the 2021 financial year.

Announcing its March quarter results, the company said that the dividend will be paid on or after five days from the date of declaration of the final dividend by the shareholders.

Today during market hours, Dr. Reddy's Lab reported its quarterly results where profit after tax plunged 76% to Rs 875 m. This compared with Rs 3.6 bn in the same quarter a year ago.

The drug major accounted Rs 7.5 bn towards impairment charges of non-current assets during the fourth quarter.

However, the revenue during the quarter under review was up by 15% to Rs 54.4 bn as compared to Rs 47.3 bn in the same quarter last year.

Commenting on the results, co-chairman and managing director, GV Prasad said:

• The company delivered healthy growth in revenues even as profits were impacted by impairment charges.
  
  In spite of multiple external challenges, our core business performed well driven by an increase in market share, some launches, and productivity improvement.

Dr. Reddy's Laboratories' share price closed 0.8% higher on the BSE today, despite a strong sell-off in the overall market.

Moving on to news from the steel sector, Steel Exchange India has announced a stock split in the ratio of 1:10.

In a regulatory filing, the company said,

Board approved the proposal for Sub division/ Split of Equity Shares of the Company from face value of Rs. 10/- each into Equity Shares of face value of Re. 1/- each, subject to the approval of the members of the Company in General Meeting.

Steel Exchange is one of the multibagger stocks of India which has shot up from around Rs 66 to Rs 145 levels in a year, logging 120% gains.

The company has rewarded its shareholders with over 1,050% returns in the last 3 years.

Steel Exchange India's share price ended 3.7% lower today on the BSE.