Sensex falls 867 points as real estate and financial stocks plunge; Nifty ends below 16,450

NEW DELHI: Stock indices fell on Friday as investors worried that rapid interest rate hikes to tame soaring inflation could slow global economic growth.
The market rout was led by real estate, financials and metals stocks, with sensex and Nifty closing down more than 1.5%.
The 30-stock BSE index fell 867 points or 1.56% to close at 54,836. While the broader NSE Nifty settled 271 points or 1.63% lower at 16,411.
Bajaj Finance, Axis Bank, Bajaj Finserv, Nestlé India, Wipro and HDFC were the main losers in the sensex pack, falling to 4.91%.
While Tech Mahindra, Power Grid, ITC and SBI were the biggest gainers, up 2.21%.
On the NSE platform, all sub indices ended in red with Nifty Realty, Financial Services and Metal falling to 3.56%.
Benchmarks posted a fourth straight weekly decline, weighed down by a surprise interest rate hike by the Reserve Bank of India, foreign fund outflows and mixed corporate earnings.
“Domestic markets are lower in global headlines, which are more focused on high inflation as well as the Fed’s rate hike two days ago,” Vice Chairman Prashanth Tapse told Reuters. of research at Mehta Equities.
On Wednesday, the Fed raised interest rates by half a percentage point as expected and Chairman Jerome Powell explicitly ruled out a 75 basis point hike at the next policy meeting.
“US markets saw a recovery of relief on Wednesday after the FOMC meeting, but fell on Thursday on greater anxiety over rising interest rates,” said Mohit Nigam, Head – PMS , Hem Securities at the PTI news agency.
The Indian rupee weakened as much as 0.9% to 76.97 against the dollar earlier in the session, its lowest level since March 7. It stabilized at 76.91.
Meanwhile, foreign investors have net sold Indian stocks worth $635 million so far this week, compared to offloading $881 million in the same period last week, according to Refinitiv data.
(With agency contributions)

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