After a positive opening, domestic equity markets slumped on Friday tracking a selloff in global markets. The S&P BSE Sensex sank as much as 426.59 points to 36,005.08 at the day’s lowest point, while the Nifty50 barometer of the National Stock Exchange (NSE) plunged 137.2 points to hit an intraday low of 10,814.50. At 11:04 am, the 30-share Sensex traded at 36,057.90, down 373.77 points or 1.03 per cent, and the 50-scrip Nifty was at 10,832.30, down 119.40 points or 1.09 per cent from the previous close.
Here are 10 things you should know about Friday’s trading session:
- Forty seven out of 50 Nifty stocks traded with losses. Trading between 2.23 per cent and 5.48 per cent lower, Indian Oil, Bharti Infratel, UPL, Maruti Suzuki and Infosys were the top five Nifty laggards.
- Heavyweights Reliance Industries, Infosys, ICICI Bank, and HDFC contributed the most to the losses on the Sensex.
- All sectors traded in the red, led by private banks, IT and fast-moving consumer goods (FMCG) stocks.
- Global stocks were sinking in a sea of red as the threat of a US government shutdown and of further hikes in US borrowing costs sent dismayed investors sailing for safer harbours. (Also Read: Rupee Loses 37 Paise Against Dollar Amid Foreign Fund Outflows)
- Analysts pointed at global economic concerns after the US central bank largely retained plans to increase interest rates despite mounting risks to growth.
- “Global cues seem to be weak after the US Federal Reserve raised rates by 25 bps and revised GDP growth downwards. The weakness is expected to be intact. So we recommend traders to book profit at current levels and wait for further confirmation,” said Ritesh Ashar, chief strategy officer, KIFS Trade Capital.
- Japan’s Nikkei fell 1.5 per cent, and was down more than 6 per cent for the week so far, while Australian stocks slipped 1.3 per cent to a two-year trough. Chinese blue chips lost 1.6 per cent, in part after the United States accused Beijing of orchestrating the hacking of government agencies and companies around the world.
- In overnight trade, the S&P 500 was heading for its worst quarter since the dark days of late 2008, with a loss of 15 per cent so far. The Nasdaq has shed 19.5 per cent from its August peak, just shy of confirming a bear market.
- In commodity markets, crude oil prices slid just over 4 per cent overnight, bringing international benchmark Brent’s losses since its October top to 37 per cent.
- On Thursday, foreign institutional investors sold net shares worth Rs. 386.44 crore, provisional data from the NSE showed. In the last session, Sensex had ended at 36,431.67 and Nifty50 at 10,951.70. (With agency inputs)