Mumbai: Benchmark Stock Indices Sensex and Nifty Experience Significant Decline

On Friday, the benchmark stock indices Sensex and Nifty witnessed a substantial decline of over 1% due to heavy selling in IT, financial, and oil stocks, mirroring weak trends in the global markets. The 30-share Sensex dropped 671.15 points or 1.12% to close at 59,135.13, with 21 of its scrips declining. The index opened lower and continued to slide, reaching a low of 58,884.98 during the day.

The broader Nifty plunged 176.70 points or 1% to close at 17,412.90, with 35 of its stocks ending in the red. The index fluctuated between 17,324.35 and 17,451.50 throughout the session. Among Sensex shares, HDFC Bank experienced the most significant fall at 2.58%, followed by SBI (2.12%), HDFC (2.09%), and IndusInd Bank (2.02%). Axis Bank, Bajaj Finserv, M&M, L&T, Reliance, Infosys, and TCS were among the major losers.

In contrast, Tata Motors, Maruti, NTPC, Sun Pharma, Power Grid, and Titan were among the gainers. The heavy selling in financial, banking, IT, and capital goods shares was triggered by weak Asian markets and overnight losses in the US market, dragging down the benchmark indices, according to analysts.

"The sell-off in US markets was triggered by a 60% crash in SVB Financials - a bank that mainly funds startups. This impacted sentiments and banking stocks took a beating on concerns that rising interest rates might trigger loan repayment defaults," said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

Global stock markets declined on Friday ahead of a US job market data amid worries about possible interest rate hikes. Markets in London, Shanghai, Frankfurt, and Tokyo declined. Oil prices were lower. The global market's cautious attitude towards the probability of a sharper rate hike was exacerbated by further negative signs from the US market. Selling intensified as the market awaited the release of US unemployment and non-farm payroll data, said Vinod Nair, Head of Research at Geojit Financial Services.

In the US, S&P 500 tumbled 1.8%, Dow Jones Industrial Average shed 1.7%, and Nasdaq composite fell 2.1% on Thursday as investors remain anxious about the prospect of more aggressive action by the Federal Reserve to fight inflation with higher interest rates. Foreign Institutional Investors (FIIs) emerged as net sellers in the capital market on Thursday as they sold shares worth Rs 561.78 crore, according to exchange data.