Stocks fell for a fourth straight session on Friday, with the benchmark S&P BSE Sensex slumping 1.61% as investors braced for more monetary tightening by the U.S. Federal Reserve and concerns grew about a fresh domestic bout of COVID-19 cases in the wake of the surge in infections in China.
The Sensex fell 980.93 points to end the week at 59,845.24 points. Losses were led by Tata Steel (4.97%), Tata Motors (4.07%), State Bank of India (3.27%), Bajaj Finserv (3.07%), Reliance (2.96%) and Wipro (2.84%).
The NSE Nifty-50 index slid 1.77% to 17,806.80 points.
“Globally markets were losing their grip post the Fed announcement which hinted at further rate hikes in upcoming meetings,” said Vinod Nair, Head of Research at Geojit Financial Services. “Robust U.S. economic data such as better-than-expected Q3 GDP, higher consumer confidence along with healthier jobless claims fuelled the worries fanning the volatility,” he added.
“Additionally, the spike in COVID cases across China has dampened the appetite for risk as it instilled fears of another global COVID outbreak,” Mr. Nair observed.
“Indications are pointing towards the prevailing corrective move to extend further, with a marginal rebound in between,” said Ajit Mishra, VP – Technical Research, Religare Broking Ltd. “Meanwhile, mixed global cues will keep the volatility high; we recommend keeping a check on leveraged positions and preferring a hedged approach,” he added.
The rupee too weakened marginally against the U.S. dollar, closing at 82.84 as compared with Thursday’s 82.79..
