Indian shares ended sharply lower on Friday as investors fretted about aggressive central bank tightening, uncertainty surrounding the war in Ukraine and Covid-19 lockdowns in China.
As the yield curve steepens, there are fears that the Federal Reserve is not doing enough to cool inflation.
On Thursday, the Bank of England warned the U.K. economy will slide into recession this year as a result of higher energy prices.
Chinese President Xi Jinping said that the government would “resolutely adhere to” the zero-Covid policy.
Investors looked ahead to the release of U.S. jobs data later in the day as well as comments by several Fed officials for more clues about the economic outlook.
The benchmark BSE Sensex plunged 866.65 points, or 1.56 percent, to 54,835.58 while the NSE Nifty index ended down 271.40 points, or 1.63 percent, at 16,411.25.
The Sensex and Nifty hit as lows as 54,586.75 and 16,340.90 respectively earlier in the day before seeing some intraday recovery.
The rupee plummeted 57 paise to close at 76.92 (provisional) against the greenback.
Axis Bank, UPL, Shree Cement, Divis Laboratories and Bajaj Finance slumped 4- percent in the Nifty pack, while Power Grid Corp, Tech Mahindra and Hero MotoCorp rose 2-3 percent.
Market Analysis
Sensex Slumps 867 Points Amid Global Selloff, Nifty Nears 16,400
2022-05-06 10:33:25
