Indian shares fell sharply on Friday, tracking weak cues from global markets.
Lower commodity prices and a global tech sell-off spurred profit taking at higher levels after recent strong gains.
The benchmark S&P/BSE Sensex fell 739 points, or 0.91 percent, to 80,605 while the broader Nifty index closed at 24,531, down 270 points, or 1.1 percent from its previous close.
Commodity-related stocks were among the worst hit, with ONGC, Hindalco, BPCL, JSW Steel and Tata Steel falling 3-5 percent.
Global sentiment was fragile as a host of factors such as deepening Sino-U.S. trade tensions, lingering uncertainty over U.S. President Joe Biden’s path to victory in the presidential race, a lack of Chinese stimulus measures to revive growth and a widespread Microsoft outage that hit services from airlines, banks and financial services, curbed investors’ appetite for risk.
The U.S. dollar recovered from four-month lows as U.S. President Joe Biden faced increased pressure from senior democratic leaders to pull out of his re-election bid.
The chances of Donald Trump finding his way back to the White House for a second term are now higher than at any previous time in the 2024 presidential race following an assassination attack on him.
Trump is known for favoring protectionist trade policies, which improves the dollar’s appeal.
Oil prices traded lower in European trade and headed for a second consecutive weekly decline on concerns about Chinese demand and the global economy.
Gold fell more than 1 percent toward $2,400 per ounce but was on track for a fourth straight weekly gain on growing expectations that the Federal Reserve will start reducing interest rates in September.
Market Analysis
Sensex, Nifty Tumble Amid Global Selloff; Metal Stocks Worst Hit
2024-07-19 10:21:17
