Index heavy weights lead losses as Sensex slumps for third day
The Sensex plunged 677.77 points to end at 59,306.93, while the Nifty fell 185.60 points to close at 17,671.65
MUMBAI: Equity benchmark Sensex tanked 678 points on Friday, tracking losses in index majors Reliance Industries, Infosys and HDFC Bank amid a weak trend in global markets.
Shares closed in the red for the third straight session on Friday, dragged by banks and IT companies, with heavy outflows from foreign investors adding to concerns of overvaluations.
The 30-share index plunged 677.77 points or 1.13% to end at 59,306.93. Similarly, the NSE Nifty fell 185.60 points or 1.04% to 17,671.65.
Tech Mahindra was the top loser in the Sensex pack, shedding over 3%, followed by NTPC, IndusInd Bank, Kotak Bank and Reliance Industries.
On the other hand, UltraTech Cement, Tata Steel, Maruti, Titan and Dr Reddy’s were among the gainers.
Among the gainer for the day were the basic materials sector with 0.55% and realty with 0.53%.
“The domestic market continued to witness selling as energy and private bank stocks remained under pressure following dull global sentiments,” said Vinod Nair, Head of Research at Geojit Financial Services.
Foreign institutional investors have sold $1.17 billion in Indian equities this week as of Thursday, Refinitiv data showed.
“The valuation risks have been one the main concerns for foreign investors,” said Joseph Thomas, Head of Research, Emkay Wealth Management.
“Few sections of the market expect growth momentum to slow in the wake of sticky inflation.”
Mixed global markets and waning interest from domestic institutional investors were also dragging markets, said Ajit Mishra, vice president of research at Religare Broking.
European markets opened weak even as the ECB decided to keep policy rates unchanged despite the inflationary pressure. US futures were trading in red following slow GDP growth and disappointing earnings from tech giants, he noted.
“Decisions of the Fed in its meeting next week will be a major factor that will drive global equities in the coming days,” Nair added.
Elsewhere in Asia, bourses in Shanghai and Tokyo ended with gains, while Hong Kong and Seoul were in the red.
Stock exchanges in Europe were trading with losses in midsession deals.
Meanwhile, international oil benchmark Brent crude advanced 0.23% to $ 83.85 per barrel.
Meanwhile, the rupee gained 4 paise to close at 74.88 (provisional) against the US dollar on Friday despite volatile domestic equities, as share sale-related inflows and some pullback in crude oil prices supported the local unit.
At the interbank forex market, the domestic unit opened at 74.78 against the greenback and witnessed an intra-day high of 74.74 and a low of 74.98 during the day’s trade. It finally ended at 74.88 a dollar.