Market snaps 3-day rising streak as RIL, banks drag
Sensex tumbles 487 pts, Nifty tanks 144 pts; Bajaj auto stock falls over 3%
image for illustrative purpose
Mumbai: Snapping its three-session rising streak, equity benchmark Sensex tumbled 487 points on Friday as investors offloaded RIL, banks and auto stocks amid a lacklustre trend overseas.
After gyrating 1,283 points during the day, the 30-share BSE index ended 487.43 points or 0.95 per cent lower at 50,792.08. The broader NSE Nifty tanked 143.85 points or 0.95 per cent to end at 15,030.95. Bajaj Auto was the top loser in the Sensex pack, falling 3.10 per cent, followed by Maruti, ICICI Bank, Sun Pharma, Reliance Industries and UltraTech Cement.
Index heavyweight Reliance accounted for most of the index's losses. Only four Sensex constituents closed in the green - PowerGrid, Titan, ONGC and Infosys, rising up to 2.28 per cent. During the holiday-shortened week, the Sensex advanced 386.76 points or 0.78 per cent, while the Nifty rose 92.85 points or 0.62 per cent.
According to Binod Modi, Head - Strategy at Reliance Securities, after seeing a brisk opening on favourable global cues, domestic equities fell sharply mainly led by selling pressure in financials and auto stocks.
"10-year US treasury yield again surged back to 1.6 per cent on anticipation of spike in inflation led by $ 1.9 trillion fiscal stimulus backed faster economic recovery.
This has weighed on investors' sentiments... "In our view, hardening bond yields and soaring oil prices are expected to weigh on investors' sentiments and may keep markets to remain volatile in the near to medium term," he added. BSE auto, energy, bankex, finance and FMCG ended up to 1.60 per cent lower, while utilities, power and consumer durables closed higher.
Broader BSE midcap index fell 0.45 per cent, while smallcap inched up 0.14 per cent. Global equities were largely on the backfoot amid rising bond yields, which stoked inflation concerns.
