Benchmark stock market indexes experienced a sharp decline on Friday, with banking and financial equities leading the way due to a global collapse in lenders. IT stocks have also gone down because investors are still worried about the possibility of high interest rates lasting for a long time.
The S&P BSE Sensex dropped 671.15 points to 59,135.13, while the NSE Nifty 50 plummeted 1% to 17,412.90. That is the greatest one-day drop for the benchmarks in more than two weeks. In only two trading sessions, benchmark indexes have lost roughly 2%.
When volatility surged dramatically, the wider market followed the poor emotions exhibited in the benchmark indexes.
Bank, financial stocks biggest losers
It should be mentioned that the heavyweight Nifty Financial index fell 1.8% at the close of the trading session, the most since January 27. The Nifty Bank Index fell 1.87 percent on the day.
The sell-off in banks and financial equities was precipitated by a meltdown in US bank stocks when shares of commercial lender Silicon Valley Bank fell 60%.
This comes after the bank was obliged to seek more capital after losing $1.8 billion on a bundle of major US bonds sold to fulfill depositors’ cash demands.
Meanwhile, IT stocks sank 0.66 percent, extending a three-day losing streak on renewed concerns about a prolonged era of high interest rates in the United States and Europe.
Adani Enterprises, HDFC Bank, Apollo Hospitals, HDFC, IndusInd Bank, SBI, Axis Bank, Bajaj Finserv, and M&M were among the companies that suffered the biggest losses on the Nifty 50 index.
The fact that international investors are starting to sell again is another big worry for the local market.