Sensex Dives 715 Points, Nifty Settles Below 17,200, US Federal Reserve Rate Hike Views Weigh
Indian equity benchmarks on Friday settled lower, dragged by selling pressure across all sectors. The domestic indices snapped their two-day winning run to finish the week on a lower note. Investors turned cautious after the U.S. Federal Reserve hinted at an aggressive rate hike -- a half percentage point -- amid concerns about high inflation.
Federal Reserve Chairman Jerome Powell said a half-point interest rate increase will be "on the table" when the Fed meets in May. Last month, the U.S. central bank had raised rates from near zero to a quarter percentage point.
Back home, the 30-share BSE Sensex plunged 715 points or 1.23 per cent to close at 57,197, while the broader NSE Nifty moved 221 points or 1.27 per cent lower to close at 17,172.
Mid- and small-cap shares ended on a negative note as Nifty Midcap 100 index fell 0.94 per cent and the small-cap shed 0.32 per cent.
All of the 15 sector gauges -- compiled by the National Stock Exchange -- closed in the red. Sub-indexes Nifty Bank, Nifty Financial Services and Nifty Metal underperformed the index by falling as much as 2.10 per cent, 1.82 per cent and 1.97 per cent, respectively.
On the stock-specific front, Hindalco was the top Nifty loser as the stock cracked 4.85 per cent to Rs 514.05. SBI, Hindustan Unilever, Cipla and Dr Reddy's were also among the laggards.
The overall market breadth stood weak as 1,471 shares advanced while 1,934 declined on BSE.
On the 30-share BSE index, SBI, HUL, IndusInd Bank, Dr Reddy's, Axis Bank, Bajaj Finserv, ICICI Bank and Infosys were among the top losers.
Also, HDFC twins (HDFC and HDFC Bank) declined after rising for two straight sessions. HDFC Bank fell 1.37 per cent to close at Rs 1,355.45, while HDFC dropped by 1.09 per cent to Rs 2,206.40.
Index heavyweight Reliance Industries (RIL) paused its 3-day sharp rally to settle 0.85 per cent lower at Rs 2,758.45. RIL had touched an all-time high of Rs 2,788.80 on Thursday.
In contrast, M&M, Bharti Airtel, Maruti, Asian Paints, ITC and HCL Tech settled in the green.
