Equities fall after volatile session

Yes Bank sheds nearly 10%, followed by SBI at 5%

Equity indices witnessed extreme volatility on Friday with the benchmark Sensex trading in a range of more than 600 points before erasing early gains to close in the red. The Nifty also closed below the psychological 12,000-mark.

While investors sold shares across sectors, banking and auto stocks were the worst hit with investors turning jittery amid a 20 basis points spike in the 10-year benchmark government bond yield in the last two trading sessions.

The 30-share Sensex, which touched a day’s high of 40,952.13, closed at 40,445.15, down 334.44 points, or 0.82%. The Nifty lost 96.90 points, or 0.81%, to settle the day at 11,921.50.

“Market sentiment turned negative as investors [are] worried over the prolonged slowdown in the economy. Banking stocks declined sharply on concern of rising g-sec yield,” said Siddhartha Khemka, head - Retail Research, Motilal Oswal Financial Services, adding that the RBI’s status quo confirms it is prioritising rising inflation over grim economic growth.

The fall in the indices came amid a strong trend in global markets that saw most Asian indices end in positive territory on Friday.

In India, market breadth was weak with more than 1,600 stocks losing ground, against less than 900 gainers. Provisional data showed that foreign portfolio investors were net sellers at ₹868 crore.

In the Sensex pack, Yes Bank led the losers, shedding nearly 10%, followed by State Bank of India, which lost nearly 5%. Indusind Bank, Tata Motors, M&M, HDFC, Maruti Suzuki India, Hero Motocorp and Axis Bank also lost over 1% each on Friday.

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Printable version | Feb 27, 2020 1:40:47 AM |

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