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

Top Stories

»	India-US relationship stronger than ever: Trump team charts ambitious agenda
»	Piyush Goyal, global CEOs discuss investment opportunities under India-UK CETA
»	How EU-India FTA goes beyond tariffs to strategic trust
»	India, UK explore new opportunities to deepen economic, trade cooperation: Piyush Goyal
»	Amazon’s $48 billion investment in India to create new opportunities for youth: PM Modi

SME Times News Bureau | 13 May, 2022
Indian equity benchmark indices have extended their fall for the sixth straight day on Friday, led by losses in banking, financial and metal stocks.

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

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

Notably, 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."