The benchmark indicies exhibited wild swings in trade on Friday as investors remained worried about global growth outlook. At close, the Sensex was down 135.37 points or 0.26 per cent at 51,360.42, and the Nifty was down 67.10 points or 0.44 per cent at 15,293.50.
Vinod Nair, Head of Research at Geojit Financial Services, said: “Rising inflation and policy tightening by global central banks are forcing the market to discount the possibilities of recession. With central banks’ policy tone pointing towards continued rate hikes of higher magnitude, we can expect FIIs to maintain their selling spree. The domestic market will continue to trade with high volatility in the near term, however, the ongoing corrections are opportunities in disguise on a medium to long-term investments.”
Top Gainer and Losers
The NSE Nifty50, meanwhile, closed at 15,294, down 67 points or 0.44 per cent. Bajaj twins, Coal India, JSW Steel, Apollo Hospitals, ITC, ICICI Bank, RIL, and HDFC Bank were the top Nifty gainers, rising between 0.8 per cent and 3 per cent.
On the flipside, Titan Company, Wipro, HDFC Life, Shree Cement, BPCL, Dr Reddy’s Labs, and Asian Paints were the top drags, down up to 6 per cent.
Sectorally, the Nifty Pharma index was worst hit, down over 2 per cent on the NSE, while the Nifty Bank added the most, up 0.75 per cent. In the broader markets, the BSE MidCap and SmallCap indices underperformed the benchmarks and slipped up to 0.9 per cent.
Among stocks, Delta Corp rose over 12 per cent. The company’s subsidiary Deltatech Gaming has filed draft papers for an IPO worth Rs 550 crores.
The US equity markets saw a sharp selloff as investors’ grappled with recession fears post the US Federal Reserve’s aggressive rate action. The Dow Jones breached below 30,000 levels, the lowest seen since January 2021, while Nasdaq fell over 4 per cent, the highest drop witnessed since September 2020.
The Bank of Japan maintained ultra-low interest rates on Friday and its guidance to keep borrowing costs at “present or lower” levels, signaling its resolve to focus on supporting the economy’s recovery from the COVID-19 pandemic. However, in a nod to the hit that the yen’s recent sharp declines may have on the economy, central bank said it must “closely watch” the impact exchange-rate moves could have on the economy. At the two-day policy meeting that ended on Friday, the BOJ maintained its -0.1 per cent target for short-term rates and its pledge to guide the 10-year yield around 0 per cent by a 8-1 vote.
Asian shares opened with fresh losses on Friday morning following another sell-off on Wall Street as a series of hikes by central banks to fight inflation this week fanned concerns that economies could tip into recession. MSCI’s index of Asia-Pacific shares outside Japan was down by 0.42 per cent.