Indian equity benchmarks suffered their worst fall in three weeks on Friday, as investors globally feared aggressive hikes in COVID-era interest rates will hamper economic growth. Across-the-board selling pulled the headline indices lower, with financial, oil & gas and IT shares being the biggest contributors to the losses.

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NSE

The 30-scrip BSE Sensex index fell as much as 1,114.3 points or two percent to 54,206 during the session, and the broader NSE Nifty50 slid to as low as 16,172.6, down 305.5 points or 1.9 percent from its previous close.

Investors lost Rs 3.2 lakh crore in wealth as the market capitalisation of BSE-listed companies came down to Rs 251.8 lakh crore, according to provisional exchange data.

"Rising inflation fears gripped the domestic market leading to a heavy sell-off ahead of the release of US inflation data and the Fed's policy meet next week. US inflation data will be crucial to sense the quantum of a rate hike," said Vinod Nair, Head of Research at Geojit Financial Services.

A total of 37 stocks in the Nifty50 basket finished the day in the red.

Heavyweights Reliance, the HDFC twins and Infosys were the biggest drags on both main indices.

All of NSE's sectoral indices closed below the flatline, with the Nifty Financial Services and the Nifty IT being the biggest laggards.

The rupee hit a record closing low against the US dollar. The benchmark 10-year bond yield settled at 7.52 percent, as against its previous close of 7.5 percent.

IT stocks fell despite weakness in the rupee, which boosts the profitability for export-oriented businesses.

Hindalco, Tata Steel and Vedanta dragged the metal pack lower amid a fall in global benchmark rates.

In the midcap segment, Firstsource, Indiabulls Housing Finance, Godrej Properties and Cholamandalam Investment were the top losers.

The smallcap index ended 1.1 percent lower.

There's nothing positive to look forward to in the market for the next 2-3 weeks, Elixir Equities Director Dipan Mehta told CNBC-TV18.

"You could expect downbeat sentiment, and sideways to negative movement in stocks for next few weeks or so," he said.

Global markets

European markets began the day in the red — falling for the fourth session in a row — as investors braced for a monthly inflation reading from the US that could guide a key policy decision by the Fed next week.

The pan-European Stoxx 600 index fell as much as 1.5 percent in early hours.

S&P 500 futures declined 0.2 percent, suggesting a lower opening ahead on Wall Street.

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First Published:Jun 10, 2022 3:48 PM IST