Bears return to D-Street after two-day rally; Sensex tumbles over 700 points, Nifty ends below 17,200


Photo source: PTI

The Sensex is up more than 700 points, with the Nifty ending below 17,200

Equity markets halted their two-day rally on Friday, with the Sensex falling to 714.53 points amid selling by weak global equity and index majors Infosys, ICICI Bank, HDFC Bank and Reliance Industries. The constant outflow of foreign funds has also hurt emotions.

The BSE benchmark Sensex fell 714.53 points, or 1.23 per cent, to 57,197.15. During the day, it fell 776.96 points, or 1.34 percent, to 57,134.72. The NSE Nifty also declined by 220.65 points or 1.27 per cent to 17,171.95.

Among the 30-share Sensex packs, State Bank of India, Hindustan Unilever, IndusInd Bank, Dr Reddy’s, Axis Bank, Bajaj Finserv, ICICI Bank and Infosys were the biggest losers. In contrast, M&M, Bharti Airtel, Maruti, ITC, Asian Paints and HCL Technologies were the gainers.

Elsewhere in Asia, markets in Tokyo, Hong Kong and Seoul have stabilized lower, while Shanghai has ended marginally higher. European markets were down in the afternoon session. Stocks were down in the US on Thursday.

“This highly volatile market without any clear direction is being affected on a daily basis by two factors – one, external and two, internal. The percentage decreases. The internal reason for influencing the market is the interplay between FIIs and DIIs. Both external and internal factors are now erratic and therefore the market is volatile.

He added that the Fed chief’s remarks that a 50 bps rate hike was possible in May and that ‘inflation control has become absolutely essential’ pushed the yield on 10-year bonds above 2.9 per cent and consequently affected the equity market.

“But this effect may also be temporary as the market has already given way to this known volatility of the Fed,” Vijayakumar added.

International oil benchmark Brent crude fell 1.60 percent to USD 106.6 a barrel. According to the stock exchange, foreign institutional investors continued their selling trend by offloading shares worth Rs 713.69 crore on Thursday.

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