Equities reversed a three-session winning run on Thursday after the U.S. Fed raised interest rates and struck a hawkish stance, souring appetite for emerging market assets.
Trading sentiment was further dented after official data showed wholesale inflation shot up to a 14-month high of 4.43% in May, while the current account deficit (CAD) jumped over three times to USD 48.7 billion, or 1.9% of the GDP, in FY18.
The BSE Sensex tumbled over 139 points to finish at 35,599.82. The broader NSE Nifty shed 48.65 points to 10,808.05.
Global markets reeled after the US Fed raised its key interest rate by 0.25% on Wednesday, the second increase of the year, and signalled two more hikes in 2018 and four in 2019.
Investors are also awaiting European Central Bank’s policy rate decision.
The Sensex saw a slightly better start and advanced to a high of 35,749.88, but soon turned lower in line with a weak trend at other Asian markets. It finally finished 139.34 points, or 0.39%, lower at 35,599.82.
The gauge had risen by 295.49 points in the past three sessions.
Likewise, the broader NSE Nifty dropped by 48.65 points, or 0.45% to 10,808.05 after shuttling between 10,773.55 and 10,833.70.
Meanwhile, foreign portfolio investors (FPIs) sold shares worth a net ₹70.77 crore, while domestic institutional investors (DIIs) bought equities to the tune of ₹486.78 crore on June 13, as per provisional data.
“The flurry of central bank meetings has kept global markets on the back foot, dragging Indian markets lower.
“WPI rising to a 14-month high and a widening CAD, both largely on account of rising crude, also kept sentiments low, but sectoral cues continued to keep markets optimistic, with pharma bucking the trend and rising nearly 2%,” said Anand James, Chief Market Strategist, Geojit Financial Services.
ICICI Bank was the biggest loser in the Sensex pack, slumping 2.11%, followed by TCS at 1.75%.
Other laggards included Adani Ports 1.75%, SBI 1.72%, Axis Bank 1.52%, NTPC 1.22%, ONGC 0.88%, L&T 0.87%, Wipro 0.82%, Tata Motors 0.78%, Bajaj Auto 0.68% and Infosys 0.55%.
Sun Pharma rose the most at 2.57%, followed by Yes Bank 1.17%, IndusInd Bank 1%, Dr Reddy’s 0.73%, RIL 0.54%, M&M 0.41% and Tata Steel 0.33%.
Sectorally, BSE IT index fell the most at 1.40%, followed by teck 1.32%, PSU 1.05%, consumer durables 0.89%, capital goods 0.81%, oil and gas 0.69%, infrastructure 0.65%, power 0.63% and bankex 0.48%.
Healthcare rose 1.47% and auto 0.05%.
The broader markets depicted a mixed trend, with the mid-cap index shedding 0.08% and the small-cap inching up 0.07%.
Most Asian markets ended lower, tracking overnight losses at the Wall Street.
Japan’s Nikkei fell 0.97%, Hong Kong’s Hang Seng shed 0.92% and Shanghai Composite Index lost 0.17%.
In Europe, Frankfurt’s DAX and Paris CAC 40 fell by up to 0.70%. London’s FTSE too was down 0.67%.
