Friday June 10, 2022
Indian shares log biggest weekly drop in a month
Picture used for illustrative purpose.
Indian shares fell more than 1 per cent on Friday and posted their biggest weekly loss in a month as investors shunned risky assets on worries that aggressive interest rate hikes by global central banks would stifle economic growth.
Dragged down by losses in financial and technology stocks, the NSE Nifty 50 index ended 1.68 per cent lower at 16,201.80 and the S&P BSE Sensex fell 1.84 per cent to 54,303.44.
Both the indexes logged losses of more than 2 per cent for a week where the domestic central bank delivered its second straight interest hike and the European Central Bank signalled it would tighten monetary policy for the first time in a decade.
“Global stock markets are seeing negative moves post the ECB meeting. Comments on inflation and the upcoming US Fed meeting will be key data points that will help markets decide next moves,” said Narendra Solanki, head of equity research (fundamental) at Anand Rathi Investment Services.
Investors expect the Federal Reserve to raise interest rates by 50 basis points next week, especially if US consumer price data on Friday confirms elevated inflation.
Leading losses in Mumbai trading, technology stocks fell 2.2 per cent and clocked a weekly loss of 2.7 per cent. The sector has lost nearly a quarter of its market value so far this year, as rising interest rates darken the outlook for the industry.
Financial stocks closed 2.2 per cent lower on the day and logged a 3 per cent drop for the week, dragged down by a 4 per cent slide in lender Kotak Mahindra Bank.