Stock markets plunge amid weak global cues

Benchmark BSE Sensex declined by 365 points and NSE Nifty settled below the 19,300 level in a volatile trade on Friday as financials, capital goods and oil shares took a hit amid concerns over potential rate hikes and weak trend in global markets.

Falling for a second day in a row, the BSE Sensex closed lower by 365.83 points or 0.56 per cent at 64,886.51. During the day, it dropped 519.77 points or 0.79 per cent to 64,732.57. The NSE Nifty declined by 120.90 points or 0.62 per cent to end at 19,265.80. On the weekly front, the BSE benchmark declined 62.15 points or 0.09 per cent and the Nifty dipped 44.35 points or 0.22 per cent.

Foreign Institutional Investors (FIIs) turned sellers on Friday as they sold equities worth Rs 4,638.21 crore, according to exchange data.

“Investor caution is evident globally, as concerns about potential rate hikes dominate the prevailing sentiment ahead of the Jackson Hole meeting. Furthermore, the minutes from the RBI MPC meeting reiterated their dedication to managing inflation within the target range, given the elevated domestic inflation levels,” said Vinod Nair, Head of Research at Geojit Financial Services.

In the broader market, the BSE mid-cap gauge fell by 0.85 per cent and small-cap declined 0.24 per cent. Among the indices, capital goods went lower by 1.29 per cent, realty declined 1.27 per cent, power fell 1.26 per cent, and utilities dipped 1.24 per cent, FMCG (0.91 per cent) and commodities (0.89 per cent). Telecommunication emerged as the only winner.

“Markets traded under pressure and lost over half a per cent, in continuation of Thursday’s decline. All sectors traded in sync with the benchmark and, we saw profit-taking in the broader indices too,”Ajit Mishra, SVP - Technical Research, Religare Broking Ltd, said.

From the Sensex pack, Larsen & Toubro, JSW Steel, IndusInd Bank, Power Grid, ITC, Mahindra & Mahindra, NTPC, HDFC Bank, ITC, Reliance Industries and Tata Motors were among the major laggards.