Market Mayhem on Friday: Sensex Tanks 1,017 pts; Nifty Holds 16,200; HDFC Drops 4%

Indian indices tanked on Friday, while European shares extended losses as rate hike guidance from the European Central Bank and upcoming US inflation data unnerved investors. In late noon deals saw broad-based sell-ff with Sensex resuming its losing run after 1-day break, plummeting 1,017 pts and Nifty ended below 16,200.

Over 35 Nifty stocks ended the session in the red with Bajaj Finance, HDFC, Kotak Bank, Hindalco, Wipro, Reliance Industries, Tech M, and Infosys falling between 2.5-4 per cent. The losses were trimmed by gains in Grasim Industries, Asian Paints, Apollo Hospitals, Divis Labs, and Dr Reddy’s Labs, that gained over 0.5 per cent each.

Sectorally, all but Nifty FMCG ended the session in the red. The losses were led by the Nifty IT, Oil & gas, Private Bank, and Financial Services indices as they fell 2 per cent each.

Among stocks, IIFL Finance rose around 5 per cent, defying a weak market. The company’s wholly-owned subsidiary IIFL Home Finance has entered into definitive agreement for raising Rs 2,200 crore for a 20 per cent stake from the Abu Dhabi Investment Authority (ADIA).

Global Cues

US stocks sold off sharply Thursday as investor anxiety heightened ahead of data on Friday that is expected to show consumer prices remained elevated in May. The Dow Jones Industrial Average fell 638.11 points, or 1.94 per cent, to 32,272.79; the S&P 500 lost 97.95 points, or 2.38 per cent, to 4,017.82; and the Nasdaq Composite dropped 332.05 points, or 2.75 per cent, to 11,754.23.

Tokyo stocks opened lower on Friday, tracking falls on Wall Street, with investors cautious ahead of key US inflation data due later in the day. The benchmark Nikkei 225 index was down 1.03 per cent, or 290.31 points, at 27,956.22 in early trade, while the broader Topix index fell 1.01 per cent, or 19.82 points, to 1,949.23.

Asian shares tracked Wall Street lower on Friday, while the dollar held on to its overnight gains, after rate hike guidance from the European Central Bank and upcoming US inflation data unnerved investors. MSCI’s broadest index of Asia-Pacific shares outside Japan fell 1.2 per cent in early Asian trade, weighed down by drops of 1.5 per cent in Hong Kong, 0.8 per cent in resources-heavy Australia and 1.6 per cent in South Korea.

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