Updated: 5 days ago
On Friday, the benchmark indices experienced erratic swings in the market as investors continued to be concerned about the outlook for global growth. The Nifty was down 67.10 points or 0.44 percent at 15,293.50 at closure, and the Sensex was down 135.37 points or 0.26 percent at 51,360.42.
"Rising inflation and policy tightening by global central banks are causing the market to underestimate the risks of recession," said Vinod Nair, Head of Research at Geojit Financial Services. We can anticipate FIIs to continue their selling spree given that central banks' policy stance favors further rate increases of greater size. In the short term, the domestic market will continue to trade with significant volatility, but medium- to long-term investors can benefit from the current corrections.
Top Gainer and Losers
Meanwhile, the NSE Nifty50 fell 67 points or 0.4% to settle at 15,294. Top Nifty gainers ranged from 0.8% to 3%, including Bajaj Twins, Coal India, JSW Steel, Apollo Hospitals, ITC, ICICI Bank, RIL, and HDFC Bank.
On the other hand, the biggest losers—down up to 6%—were Asian Paints, Wipro, BPCL, Dr. Reddy's Labs, HDFC Life, Shree Cement, and Titan Company.
Sectorally, the Nifty Pharma index suffered the most, falling nearly 2% on the NSE, while the Nifty Bank index saw the biggest gains, up 0.75 percent. The BSE MidCap and SmallCap indices lagged the benchmarks and fell up to 0.9% in the larger markets.
Among stocks, Delta Corp increased by more than 12%. Delta tech Gaming, a division of the firm, has submitted draught documents for an Rs. 550 crores initial public offering.
Following the US Federal Reserve's aggressive rate action, investors' recession fears caused a major selloff in US equity markets. The Nasdaq lost more than 4%, the most decline seen since September 2020, while the Dow Jones dipped below 30,000 levels, the lowest seen since January 2021.
On Friday, the Bank of Japan reiterated its guideline to keep borrowing costs at "present or lower" ultra-low interest rates "levels, demonstrating its determination to concentrate on aiding the economy's recovery from the COVID-19 outbreak. However, the central bank stated that it must "closely watch" the impact that the yen's recent strong losses may have on the economy "the potential effects of exchange rate changes. The BOJ maintained its -0.1% goal for short-term rates and its promise to steer the 10-year yield around 0% by a vote of 8-1 during the two-day policy meeting that ended on Friday.
Following another sell-off on Wall Street, Asian equities opened lower on Friday morning as worries that nations would slip into recession were stoked by a string of central bank measures this week intended to combat inflation. Outside of Japan, the MSCI index of shares in Asia-Pacific fell 0.42 percent.