Dalal Street lay flat on Friday under intense selling pressure, reflecting a slowdown in global equities as investors prepare to slow global growth amid tightening central bank policy.
A sharp fall in the rupee amid rising crude oil prices and steady inflows of foreign funds has raised concerns.
The 30-share BSE Sensex fell 866.65 points, or 1.56 percent, to 54,835.58. During the day, it fell 1,115.48 points, or 2 percent, to 54,586.75.
Similarly, the broader NSE Nifty declined by 271.40 points, or 1.63 per cent, to 16,411.25.
Bajaj Finance topped the Sensex component, trailing 4.91 per cent, followed by Axis Bank, Bajaj Finserv, Nestle, Wipro, HDFC, Infosys, HDFC Bank and Ultratech Cement.
In contrast, Tech Mahindra, Powergrid, ITC, SBI, NTPC and Sun Pharma gained 2.21 per cent.
On a weekly basis, the Sensex lost 2,225.29 points, or 3.89 percent, while the Nifty lost 691.30 points, or 4.04 percent.
“Markets have been in the south since the start of the trading session and then sales have intensified as rising crude oil prices have raised fears that inflation will pose a major challenge ahead.
Amal Athawale, Deputy Vice President of Technical Research at Kotak Securities Ltd, said:
In broader markets, the BSE Smallcap Gauge fell 2.10 percent and the Midcap 2.06 percent.
Most BSE sectoral indices fell 3.53 percent, followed by metals (3.10 percent), basic materials (2.80 percent), consumer sustainability (2.41 percent) and IT (2.27 percent). Settled with the benefits of utility and power.
Stocks declined by 2,519, while 835 advanced and 106 unchanged.
World markets, which initially stopped the US Fed’s rate hike, have slowed due to rising interest rates in China and new concerns about economic recovery amid the lockdown.
Meanwhile, the Bank of England on Thursday raised its key interest rate to its highest level in 13 years.
Elsewhere in Asia, markets in Hong Kong, Shanghai and Korea have stabilized significantly less, with Tokyo ending higher. European exchanges were trading in the negative zone in the afternoon session. Wall Street traded down overnight on Thursday.
“A sharp crash in US stocks has hurt the global market as it assesses the need for higher rates to keep inflation in check.
“As the Bank of England raises its interest rates, it warns of the potential risk of a recession, raising fears among investors,” said Vinod Nair, head of research at Geojit Financial Services. International oil benchmark Brent crude jumped 2.20 percent to USD 113.3 a barrel.
The rupee lost 57 paise to close at 76.92 (provisional) against the US dollar on Friday, as the overseas lost weight due to a strong American currency and strong crude oil prices.
Foreign institutional investors offloaded shares worth Rs 2,074.74 crore on Thursday, according to the stock exchange.
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