Bombay Stock Exchange
Bombay Stock Exchange

Indices fall for sixth straight day, Sensex sheds 2.7% this week cumulatively

Mumbai, May 13, 2022

Indian equity benchmark indices extended their fall for the sixth straight day on Friday, led by losses in banking, financial and metal stocks.

Shedding their entire opening gains, the domestic indices entered into the red territory later in the day on Friday.

The BSE Sensex closed at 52,794 points, down 137 points or 0.3 per cent, whereas the NSE Nifty closed at 15,782 points, down 26 points or 0.2 per cent.

Equity investors were concerned about the persistent high inflation globally and tightening monetary policy stance by several central banks.

India's retail inflation accelerated to 7.79 per cent in April due to high fuel and food costs. The inflation print remained above the tolerance limit of the central bank for a fourth month in a row.

"Domestic markets witnessed a rebound as buyers took the recent correction into their advantage following the trend of the global market. However, the weakness seen in the banking sector triggered a late selloff," said Vinod Nair, Head of Research at Geojit Financial Services.

The US Fed cautioned against an aggressive policy stance in order to bring inflation under the Fed's comfort zone of 2 per cent, Nair added.

Global stocks rose on Friday on account of bargain buying after Federal Reserve Chair Jerome Powell pushed back against speculation of steeper interest-rate hikes.

Risk sentiment was also boosted by a rebound in cryptocurrencies, said Deepak Jasani, Head of Retail Research, HDFC Securities.

"The fact that Nifty keeps witnessing selling pressure on rises during the day is disappointing as it seems to be a regular phenomenon lately. 15,671 is the near term low where the Nifty could take support," he said.

The fresh selling pressure in the banking pack is further adding to the negativity, said Ajit Mishra, VP, Research, Religare Broking.

"We thus reiterate our negative view and suggest continuing with the 'sell on the rise' approach. Since most sectors are reeling under pressure, participants should align their positions accordingly and avoid contrarian bets."

IANS

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