Sensex, Nifty Post Biggest Single-Day Drop Since May On Global Woes
Indian equity markets posted their biggest single-day drop since May after a global selloff in risk assets, sparked by surging U.S. bond yields, marred sentiment.
The Sensex ended 3.8% lower at 49,099 on Friday. The 30-stock index fell more than 2,000 points intra-day and eventually ended with losses of 1,939 points. The Nifty 50, too, lost more than 550 points, ending the day 3.8% lower at 14,529.
This is also the second straight weekly decline for the benchmarks.
“What we are seeing in the global markets is a knee-jerk reaction to the rise in global bond yields,” Rusmik Oza, executive vice-president and head of fundamental research at Kotak Securities, said in an emailed statement to BloombergQuint.
All the sectoral indices ended with losses on Friday.
Nifty Bank was the biggest loser, ending 1,745 points down. That was the biggest single-day drop for the gauge since May last year.
Nifty Auto posted its biggest intra-day fall in two months.