NEW DELHI: Equity indices tumbled on Friday as investors fretted that fast-paced interest rate hikes to tame surging inflation would slow global economic growth.
The market rout was led by realty, financial and metal stocks as both sensex and Nifty closed over 1.5 per cent lower.
The 30-share BSE index fell 867 points or 1.56 per cent to close at 54,836. While, the broader NSE Nifty settled 271 points or 1.63 per cent lower at 16,411.
Bajaj Finance, Axis Bank, Bajaj Finserv, Nestle India, Wipro and HDFC were the top losers in the sensex pack falling up to 4.91 per cent.
While Tech Mahindra, Power Grid, ITC and SBI were the major gainers rising as much as 2.21 per cent.
On the NSE platform, all sub-indices finished in red with Nifty Realty, Financial Services, and Metal falling up to 3.56 per cent.
The benchmark indexes posted a fourth consecutive weekly fall, weighed down by a surprise interest rate hike by the Reserve Bank of India, foreign fund outflows and mixed corporate earnings results.
"Domestic markets are lower on the global headlines, which are focusing more on high inflation as well as the Fed rate increase two days ago," Prashanth Tapse, vice president of research at Mehta Equities told Reuters.
The Fed on Wednesday raised interest rates by half a percentage point as expected and Chair Jerome Powell explicitly ruled out a 75-basis-point hike in the next policy meeting.
"US markets witnessed a relief rally on Wednesday after FOMC meeting but it tumbled on Thursday due to more anxiety over rising interest rates," Mohit Nigam, head - PMS, Hem Securities told news agency PTI.
The Indian rupee weakened as much as 0.9% to 76.97 against the dollar earlier in the session, its lowest level since March 7. It settled at 76.91.
Meanwhile, foreign investors have net sold Indian equities worth $635 million so far this week, compared with $881 million offloaded in the same period last week, according to Refinitiv data.
(With inputs from agencies)
