Indian shares fell sharply on Friday as investors fretted about weakening growth and stubborn inflationary pressures in the U.S., the world’s largest economy.
The 10-year U.S. yield rose to the highest since November and the 2-year yield topped 5 percent after new data showed slowing GDP growth but strong inflation, raising fears of stagflation and pushing out rate-cut bets to December.
Investors also reacted to mixed earnings results from U.S. tech majors and awaited the release of the Federal Reserve’s preferred measure of inflation later in the day for further direction.
The benchmark S&P BSE Sensex ended the session down 609.28 points, or 0.82 percent, at 73,730.16, tracking mixed cues from global markets following blockbuster earnings from Microsoft Corp. and Alphabet Inc.
The broader NSE Nifty index settled 150.40 points, or 0.67 percent, lower at 22,419.95, snapping a five-day winning streak.
Financials lost ground, with Bajaj Finance and Bajaj FinServ falling 7.7 percent and 3.7 percent, respectively amid concerns over profit growth.
SBI Life, Nestle India and IndusInd Bank fell 2-3 percent.
Among the prominent gainers, IT firm Tech Mahindra soared 7.6 percent after it laid out a big plan for a turnaround by FY27.
Divis Laboratories surged nearly 5 percent, extending gains for a fifth straight session.
LTIMindTree rallied 3.4 percent. After recording a sequential profit decline in Q4, the information technology company said it is confident of bouncing back in Q1 FY25, and aims to deliver broad-based growth.
Bajaj Auto climbed 2.5 percent after expanding export operations.
Market Analysis
Sensex, Nifty Snap Five-day Winning Streak
2024-04-26 10:37:35
