Sensex breaks over 700 points, Nifty closes below 17,200
Equity markets halted their two-day rally on Friday with the Sensex falling 714.53 points amid weak global equities and selling in major indices Infosys, ICICI Bank, HDFC Bank and Reliance Industries. Persistent foreign fund outflows also weighed on the sentiment.
The BSE benchmark Sensex closed 714.53 points or 1.23 per cent lower at 57,197.15. During the day, it closed 776.96 points or 1.34 per cent lower at 57,134.72. The NSE Nifty also closed at 17,171.95, down 220.65 points or 1.27 per cent.
State Bank of India, Hindustan Unilever, IndusInd Bank, Dr Reddy’s, Axis Bank, Bajaj Finserv, ICICI Bank and Infosys were the biggest losers in the 30-share Sensex pack. Conversely, M&M, Bharti Airtel, Maruti, ITC, Asian Paints and HCL Technologies were among the gainers.
Elsewhere in Asia, markets in Tokyo, Hong Kong and Seoul closed lower, while Shanghai ended marginally higher. European markets were trading with a fall in the afternoon session. Shares in the US closed with a fall on Thursday.
“This highly volatile market with no clear direction is being affected on a daily basis by two factors – one, external and two, internal. External factor Mother Market is uncertain movement in the US where the S&P 500 and Nasdaq go up in approx. one day A fall of 2 per cent in the next day and around 2 per cent the next day. The internal factor influencing the market is a see-saw conflict between FII and DII. Both these external and internal factors are now uncertain and hence the market is volatile without any guidance. K,” said VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
He said the Fed chief’s comments that a 50 bps rate hike is possible in May and that “control of inflation has become absolutely necessary” has pushed 10-year bond yields above 2.9 per cent and consequently on equity markets. has had an impact.
“But this effect is also likely to be temporary as the market has already discounted this known Fed’s encouragement,” Vijayakumar said.
Meanwhile, international oil benchmark Brent crude fell 1.60 per cent to $106.6 per barrel. Foreign institutional investors continued selling shares worth Rs 713.69 crore on Thursday, according to stock exchange data.