Sensex, Nifty On Course For First Weekly Drop In Six
Shares were set for their first weekly drop in six as markets fell further on Friday, weighed down by losses in banking and auto stocks and on concerns surrounding global economic recovery and inflationary pressure.
The blue-chip NSE Nifty 50 index declined 0.65 per cent to 17,503.20 by 2:07 pm and the benchmark S&P BSE Sensex fell 0.69 per cent to 58,719.72, extending losses into a fourth session.
Both indexes have lost about two per cent so far this week in what would be their biggest weekly drop since February, as markets attempt to consolidate after the recent run-up on accommodative monetary policies and easing COVID-19 restrictions.
On Friday, fears that inflation may persist even after global growth has peaked, and expectation that the U.S. Federal Reserve would tighten policy in the coming months wrecked markets across the world.
However, domestic positivity has not changed, said Siddharth Purohit, a research analyst at SMC Global Securities, adding that market volatility would continue this month as global events and the domestic earnings season played out.
Auto stocks dropped 1% ahead of September sales data, with Maruti Suzuki down 2.8% a day after it warned that total vehicle production in October at two of its plants would be around 60% of normal levels due to a global chip shortage.
Banking stocks fell 0.8%, with HDFC Bank sliding more than 1%, while consumer goods stocks slipped 0.7%.
Energy stocks advanced, with Indian Oil Corp rising 1% to be among the top gainers on the Nifty 50.
An increase in the prices of locally produced gas from old fields amid rising global gas prices helped sentiment, SMC's Purohit said.
