The BSE Sensex closed 1.12% down at 59,135.13. (file)
Bengaluru:
Shares fell nearly 1% on Friday as banking and financial stocks mirrored a slowdown in lenders globally, while IT stocks continued to slide on concerns of higher interest rates ahead of key US jobs data later.
The Nifty 50 index fell 1% to 17,412.90, while the S&P BSE Sensex fell 1.12% to 59,135.13, their biggest one-day fall in two weeks. The indices, which were broadly flat for the week at the start of the session, slipped to losses of more than 1% for the holiday-strewn week.
The highly-weighted financial index fell 1.8% in its biggest decline since January 27, shortly after the Hindenburg report on the Adani group. The Nifty Bank index, in particular, slumped 1.87% on the day.
A selloff in US bank stocks was triggered after the Silicon Valley bank was forced to raise new capital after losing $1.8 billion after selling a package of mainly US bonds to meet depositors’ demands for cash.
IT shares declined 0.66% for the third consecutive session due to concerns about rate hikes in the United States and Europe, where most of their clients are based.
With recent data showing the labor market remains tight and Fed Chair Jerome Powell setting the stage for higher and faster rate hikes, the Federal Reserve’s chances of raising rates have increased.
“Powell’s comments came as a shock to markets, which had been assuming that the end of the rate-hike cycle was near,” said Pramod Gubbi, co-founder of Marcellus Investment Managers.
“If the employment data demonstrate further strength in labor markets, it will present a reality check for markets globally.”
Return of selling pressure from foreign investors has raised concerns in the Indian market.
In individual stocks, Axis Bank fell around 2% on multiple block deals.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
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