NEW DELHI: Stock indexes fell for a fourth straight session on Friday as all sectors ended in the red amid softening investor sentiment.
BSE sensex 30 shares continued to be under selling pressure and dropped 980.93 points, or 1.61%, to 59,845.29. On the day, it fell 1,060.66 points, or 1.74%, to 59,765.56.
On similar lines, the broader NSE Nifty fell 320.55 points, or 1.77%, to end at 17,806.80.
From the Sensex package, Tata Steel has dropped almost 5%. Other major laggards are Tata Motors, State Bank of India, Bajaj Finserv, Reliance Industries, Wipro, IndusInd Bank, Larsen & Toubro and Maruti Suzuki.
Sensex closed below 60,000 for the first time since October 28, marking the worst week for both indexes in six months.
Both indexes are down more than 2.4% on a weekly basis.
Here are the top reasons behind today’s market crash:
* PSU Bank, metal stocks lead the market down
Public sector banks fell the most today with a 6.06% quarterly loss on NSE Nifty. Indian Overseas Bank (IOB) fell the most with 14.82%, while Union Bank dropped 10.57%. Interestingly, PSU Bank stock is generating the highest returns for investors since the last 2 months.
The Metals and Media indexes also fell 4.47% and 4.99%, respectively. Metal stockpiles fell amid growing concerns about Covid-19 in China, the world’s biggest steel consumer.
* US economic data
Data on weekly US jobless claims indicated that the labor market remained tight, while the US economy recovered faster than previously estimated in the third quarter.
In particular, investors are fretting that the Fed funds target rate could move higher and stay at that level for longer than previously expected, increasing the likelihood of a recession.
Market attention will now turn to US personal consumption expenditures (PCE) data later on Friday that will provide further clues as to whether inflation will continue to moderate. .
The US central bank raised rates by 50 basis points this month after four consecutive 75 basis points hikes this year, but Chairman Jerome Powell said the Fed will offer more rate hikes. more by 2023 even as the economy slips into recession.
* Fear of Covid increases
Rising Covid-19 cases in the world’s second-largest economy China have worried investors globally, amid concerns about a new variant of the infection.
China’s strict no-Covid policy, which introduced mass testing and strict quarantine measures, was revised earlier this month following mass anti-government protests.
Several Chinese cities have been subject to prolonged lockdowns, often caused by a handful of infections, and there are signs that people are starting to run out of patience.
Experts are now predicting a tough time ahead, with grim predictions that nearly 2 million people will die from the virus next year.
India has also stepped up anti-Covid measures and reintroduced random testing for international visitors from December 24.
* Global Market Sentiment
Global shares were mixed on Friday as the last full trading week of the year drew to a close, with US inflation data looming as a reminder of how soaring prices and interest rates have changed the outlook. What do investors think about the last 12 months?
Wall Street plummeted overnight after steady final estimates for third-quarter U.S. gross domestic product and other data stoked fears that the Federal Reserve will keep raising interest rates for a long time. than expected.
Oil prices rose on expectations of a drop in Russian crude supplies, helping to offset concerns about US transportation fuel demand hit by a pending Arctic storm that threatens travel. during the Christmas holiday.
Chinese stocks were little changed, while Hong Kong stocks fell as China grapples with a spike in COVID-19 infections, after Beijing lifted its strict no-Covid policy to contain the virus.
* Japanese Inflation
Recently released data showed that Japan’s inflation hit a 41-year high. This reinforces expectations that the country’s central bank will raise interest rates next year.
Investors have been on a roller coaster ride this month with inflation slowing and the easing of monetary policy hikes offset by central bank warnings that borrowing costs could may be higher than expected.
Those worries were compounded by the Bank of Japan’s shock decision this week to leave ultra-loose monetary policy, increasing bets on an even constrained investment environment. more by 2023.
* Discount Rupees
The rupee fell 7 paise to close at 82.86 (temporary) against the US dollar on Friday as crude oil prices stabilized and domestic stocks plummeted amid growing concerns about interest rate hikes. capacity.
Analysts said investors were concerned that strong US economic data would prompt the Federal Reserve to double interest rates to keep inflation in check.
(With input from agencies)
BSE sensex 30 shares continued to be under selling pressure and dropped 980.93 points, or 1.61%, to 59,845.29. On the day, it fell 1,060.66 points, or 1.74%, to 59,765.56.
On similar lines, the broader NSE Nifty fell 320.55 points, or 1.77%, to end at 17,806.80.
From the Sensex package, Tata Steel has dropped almost 5%. Other major laggards are Tata Motors, State Bank of India, Bajaj Finserv, Reliance Industries, Wipro, IndusInd Bank, Larsen & Toubro and Maruti Suzuki.
Sensex closed below 60,000 for the first time since October 28, marking the worst week for both indexes in six months.
Both indexes are down more than 2.4% on a weekly basis.
Here are the top reasons behind today’s market crash:
* PSU Bank, metal stocks lead the market down
Public sector banks fell the most today with a 6.06% quarterly loss on NSE Nifty. Indian Overseas Bank (IOB) fell the most with 14.82%, while Union Bank dropped 10.57%. Interestingly, PSU Bank stock is generating the highest returns for investors since the last 2 months.
The Metals and Media indexes also fell 4.47% and 4.99%, respectively. Metal stockpiles fell amid growing concerns about Covid-19 in China, the world’s biggest steel consumer.
* US economic data
Data on weekly US jobless claims indicated that the labor market remained tight, while the US economy recovered faster than previously estimated in the third quarter.
In particular, investors are fretting that the Fed funds target rate could move higher and stay at that level for longer than previously expected, increasing the likelihood of a recession.
Market attention will now turn to US personal consumption expenditures (PCE) data later on Friday that will provide further clues as to whether inflation will continue to moderate. .
The US central bank raised rates by 50 basis points this month after four consecutive 75 basis points hikes this year, but Chairman Jerome Powell said the Fed will offer more rate hikes. more by 2023 even as the economy slips into recession.
* Fear of Covid increases
Rising Covid-19 cases in the world’s second-largest economy China have worried investors globally, amid concerns about a new variant of the infection.
China’s strict no-Covid policy, which introduced mass testing and strict quarantine measures, was revised earlier this month following mass anti-government protests.
Several Chinese cities have been subject to prolonged lockdowns, often caused by a handful of infections, and there are signs that people are starting to run out of patience.
Experts are now predicting a tough time ahead, with grim predictions that nearly 2 million people will die from the virus next year.
India has also stepped up anti-Covid measures and reintroduced random testing for international visitors from December 24.
* Global Market Sentiment
Global shares were mixed on Friday as the last full trading week of the year drew to a close, with US inflation data looming as a reminder of how soaring prices and interest rates have changed the outlook. What do investors think about the last 12 months?
Wall Street plummeted overnight after steady final estimates for third-quarter U.S. gross domestic product and other data stoked fears that the Federal Reserve will keep raising interest rates for a long time. than expected.
Oil prices rose on expectations of a drop in Russian crude supplies, helping to offset concerns about US transportation fuel demand hit by a pending Arctic storm that threatens travel. during the Christmas holiday.
Chinese stocks were little changed, while Hong Kong stocks fell as China grapples with a spike in COVID-19 infections, after Beijing lifted its strict no-Covid policy to contain the virus.
* Japanese Inflation
Recently released data showed that Japan’s inflation hit a 41-year high. This reinforces expectations that the country’s central bank will raise interest rates next year.
Investors have been on a roller coaster ride this month with inflation slowing and the easing of monetary policy hikes offset by central bank warnings that borrowing costs could may be higher than expected.
Those worries were compounded by the Bank of Japan’s shock decision this week to leave ultra-loose monetary policy, increasing bets on an even constrained investment environment. more by 2023.
* Discount Rupees
The rupee fell 7 paise to close at 82.86 (temporary) against the US dollar on Friday as crude oil prices stabilized and domestic stocks plummeted amid growing concerns about interest rate hikes. capacity.
Analysts said investors were concerned that strong US economic data would prompt the Federal Reserve to double interest rates to keep inflation in check.
(With input from agencies)
