The BSE Sensex spiralled lower for the second straight session on Friday, in lockstep with other global markets after a host of central banks hiked interest rates and indicated more policy tightening to cool inflation even at the cost of economic growth.
A weakening rupee amid foreign fund outflows further crimped risk appetite.
The 30-share BSE benchmark tumbled 461.22 points or 0.75% to settle at 61,337.81.
The broader NSE Nifty declined 145.90 points or 0.79% to end at 18,269.
Dr Reddy’s was the top laggard in the Sensex pack, shedding 3.62%, followed by M&M, Asian Paints, TCS, SBI, Titan, PowerGrid and Wipro.
Only four counters mustered gains—HDFC Bank, HUL, Nestle India, and Tata Steel, rising up to 0.49%.
Central banks like the European Central Bank (ECB) and Bank of England (BoE) followed the US Federal Reserve in increasing policy rates as policymakers reaffirmed their commitment to curb price rise. Their hawkish commentary dashed hopes of interest rates nearing their peak, sending equities tumbling worldwide.
“Global markets extended their rout as the ECB (European Central Bank) and BoE (Bank of England) followed the Fed in raising policy rates by half a per cent while maintaining a hawkish tone on inflation,” said Vinod Nair, Head of Research at Geojit Financial Services.
“The aggressiveness of central banks in combating inflation has raised concerns about the global economy’s health. Despite attempts to recoup losses, lack of global support pushed the indices back into negative territory,” he added.
On a weekly basis, the Sensex declined 843.86 points or 1.36%, while the Nifty shed 227.60 points or 1.23%.
“Markets are likely to remain in consolidative range due to lack of triggers in the near term. Also, lower participation from institutional investors due to upcoming year-end holidays would keep the markets lackluster,” said Siddhartha Khemka, Head—Retail Research, Motilal Oswal Financial Services Ltd.
In the broader market, the BSE midcap gauge declined 1.44% and smallcap index dipped 0.96% in Friday’s session.
All sectoral indices ended lower, with realty falling 1.57%, followed by consumer discretionary (1.36%), industrials (1.32%), capital goods (1.26%), teck (1.25%), IT (1.24%), and auto (1.13%).
Elsewhere in Asia, equity markets in Seoul, Tokyo and Shanghai ended lower, while Hong Kong settled in the green.
Equity exchanges in Europe were trading in the red in mid-session deals. The US markets had ended sharply lower on Thursday.
International oil benchmark Brent crude slipped 2.25% to $79.38 per barrel.
The rupee dropped 9 paise to close at 82.85 (provisional) against the US dollar.
Foreign institutional investors (FIIs) offloaded shares worth a net Rs 710.74 crore on Thursday, according to exchange data.
Edited by Kanishk Singh