New Delhi: Sensex and Nifty, the two main equity benchmarks, extended their decline for the sixth consecutive session on Friday, mainly due to losses in banking and financial stocks at the end of the sale.
Investor sentiment has shaken after India’s headline inflation hit an eight-year high of 7.79%, prompting the Reserve Bank of India (RBI) to hike interest rates again next month .
The 30-stock BSE Sensex pared all intraday gains and fell 136 points (0.26%) to end at 52,793. The Sensex had rallied 855 points (1.61%) to 53,785. While the NSE Nifty wider settled the day’s trade at 15,782, down 26 points.
On the BSE, State Bank of India, ICICI Bank, NTPC, Bharti Airtel, Bajaj Finserv, Axis Bank and Maruti were the biggest losers. On the other hand, Sun Pharma, M&M, ITC, Hindustan Unilever, Titan and Reliance were among the winners.
In the broader market, BSE mid-cap and small-cap stocks finished lower, with the Nifty Midcap 100 down 1.03% and the small-cap 0.94%.
On the NSE, seven gauges out of the 15 sectors settled in the red. The Nifty Bank, Nifty Financial Services and Nifty Metal sub indices underperformed the index falling as much as 1.23%, 1.26% and 2.08%, respectively.
In Thursday’s previous trading session, the Sensex plunged 1,158 (2.14%) to end at 52,930. The NSE Nifty fell 359 points (2.22%) to settle at 15,808.
In Asia, markets stabilized higher, with Tokyo, Hong Kong, Seoul and Shanghai gaining significantly.
In Europe, stocks traded higher in the afternoon session. In the United States, stocks ended on a mixed note on Thursday.
Meanwhile, the international crude oil benchmark Brent jumped 1.09% to $108.6 a barrel.
According to stock market data, foreign institutional investors continued their selling spree and on Thursday sold shares with a net worth of Rs 5,255.75 crore.
“REITs continue their selling frenzy, which is further impacting sentiment. To top it all off, CPI inflation for April hit a worryingly high 7.79%, leaving no other choice. to RBI than to become hawkish in upcoming policy meetings,” VK Vijayakumar, chief investment strategist at Geojit Financial Services, told PTI.