Markets fell for the second straight session as weak global cues triggered a sell-off across banking stocks, said Amol Athawale of Kotak Securities Ltd. | Photo Credit: Balaji WS [email protected]
Benchmark stock indexes fell 1% on Friday led by losses in banking stocks and fears of further US rate hikes
The S&P BSE Sensex fell 671.15 points, or 1.12%, to 59,135.13 points. Sensex stocks that lost the most included HDFC Bank (2.63%), HDFC (2.27%), State Bank (2.12%), IndusInd Bank (2.06%) and Axis Bank (1.89%). The NSE Nifty-50 index also fell 176.70 points or 1% to 17,412.90 points.
Amol Athawale, Deputy Vice-President, Technical Research, Kotak Securities Ltd., said, “Markets tumbled for the second consecutive session as weak global cues triggered selling across the board with banking stock taking the highest pounding.”
“Sentiment was battered by the US Fed’s recent announcement that more rate hikes are on the cards to keep inflation under control, which could fuel fears of a lingering recession,” he said.
Vinod Nair, Head of Research, Geojit Financial Services said, “The global market’s cautious attitude towards the possibility of a sharper rate hike has been exacerbated by further negative signs from the US market. Selling intensified as the market the release of US unemployment and non-farm payrolls data, which will have a big impact on the upcoming Fed meeting.”
“However, the higher-than-expected US jobless claims that came in on Thursday helped ease some concerns about the Fed getting tighter,” he added.