Updated: February 26, 2021 4:22:04 pm
The benchmark equity indices on the BSE and National Stock Exchange (NSE) fell nearly 4 per cent lower on Friday tracking the weakness in global equity markets which fell as a rout in global bond markets sent yields flying and spooked investors amid fears the heavy losses suffered could trigger distressed selling in other assets.
The S&P BSE Sensex crashed 1,939.32 points (3.80 per cent) to settle at 49,099.99, while the broader Nifty 50 ended at 14,529.15, down by 568.20 points (3.76 per cent). During the day’s trade the Sensex fell as much as 2,148.83 points to hit a low of 48,890.48, while the Nifty slipped as much as 629.60 points to touch a low of 14,467.75.
On Thursday, the 30-share BSE benchmark ended 257.62 points (0.51 per cent) higher at 51,039.31. While the Nifty rose 115.35 points (0.77 per cent) to 15,097.35.
All 30 stocks in the BSE benchmark ended in a sea of red on Friday. HDFC twins, comprising HDFC Bank and mortgage lender Housing Development Finance Corporation (HDFC) were the leading contributors to the fall in Sensex. They were followed by ICICI Bank, oil-to-telecom giant Reliance Industries (RIL), Kotak Mahindra Bank and Axis Bank. See heatmap below
All the sectoral indices on NSE ended lower on Friday. The key Bank Nifty ended 4.78 per cent lower dragged by Axis Bank, Kotak Mahindra Bank and RBL Bank. Apart from this, the Nifty Financial Services index slipped 4.93 per cent weighed by Mahindra & Mahindra Financial Services, Shriram Transport Finance Company and Bajaj Finserv.
Here’s how the sectoral indices performed:
Coming to the broader market indices, the S&P BSE MidCap ended at 19,978.65, down 355.15 points (1.75 per cent), while the S&P BSE SmallCap index fell 149.63 points (0.74 per cent) to settle at 20,155.35.
The volatility index or India VIX rose 22.93 per cent at 28.1425.
“Domestic markets tumbled in line with global trend triggered by a sharp rise in bond yields. Increasing geopolitical tension between the US and Syria aggravated the selling. Q3 GDP data which is to be released today also added volatility in the Indian market. Although negative, mid and small caps outperformed their larger indices showing investor confidence. The market will gain momentum as the global market is expected to stabilize supported by maintaining accommodative monetary policy and a growing economy,” said Vinod Nair, Head of Research at Geojit Financial Services.
Global stocks fell on Friday, with Asian shares down by the most in nine months, as a rout in global bond markets sent yields flying and spooked investors amid fears the heavy losses suffered could trigger distressed selling in other assets.
MSCI’s Emerging Markets equity index suffered its biggest daily drop in nearly 10 months and was 2.7 per cent lower, while European shares opened in the red, with the STOXX 600 down 0.7 per cent, recovering from heavier losses earlier in the session.
The MSCI world equity index, which tracks shares in 50 countries, was 0.9 per cent lower and heading for its worst week in a month.
Asia saw the heaviest selling, with MSCI’s broadest index of Asia-Pacific shares outside Japan sliding more than 3 per cent to a one-month low, its steepest one-day percentage loss since May 2020.
–global market input from Reuters
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