Sensex plunges over 1,800 points, Nifty slips below 14,700 amid weak global cues
New Delhi | Jagran Business Desk: Amid weak global cues, the domestic stock market on Friday opened in red as 30-share BSE Sensex plunged more than 1,800 points and dropped to 49,222.92 while the Nifty was down by over 500 points or 3.48 per cent and was trading at 14,571.65.
Top losers in the Sensex pack were ICICI Bank, HDFC Bank, IndusInd Bank, State Bank of India, M&M, Axis Bank and Reliance Industries Limited while Bharti Airtel was the only firm that was trading in green.
Meanwhile, RailTel -- the Rs 800 crore initial public offering (IPO) from the Ministry of Railways -- on Friday made its debut in the stock market and was up by nearly 11 per cent from its issue price of Rs 93 per share.
Market experts said that the recent rise in bond yields globally and concerns over the higher commodity prices were the reason behind Sensex and Nifty's fall on Friday morning. Calling Friday's dip as a "see-sawing" movement, experts said that the market's long-term strategy of 'buy on dips' has been rewarding and can work in the future as well.
"The sell-off in the US market yesterday was the market's response to 10- year yield touching 1.6 per cent. The Fed's interpretation of the rising yield is that it is discounting better growth prospects while the market typically discounts stock prices at a lower PE when interest rates rise," Financial Express quoted Geojit Financial Services CIS VK Vijayakumar as saying.
"Fed's declared commitment to inject liquidity and keep rates low through 2023 can ensure a buoyant market this year. So investors can utilise opportunities thrown up by corrections to buy quality stocks is performing sectors," he added.
US equities witnessed steep fall on Thursday as sharp spike in bond yields dampened investors' sentiments. Elsewhere in Asia, bourses in Shanghai, Hong Kong, Seoul and Tokyo were trading with significant losses in mid-session deals. Meanwhile, the global oil benchmark Brent crude was trading 0.62 per cent lower at USD 65.70 per barrel.
Posted By: Aalok Sensharma