NEW DELHI: After having rallied for months but facing minor setback over the recent few sessions, the BSE Sensex nose-dived 1,939 points (3.80 per cent) on Friday to close at 49,100. Led by a spike in United States bond yields, the dive made investors poorer by Rs 5.4 lakh crore in a single day as market capitalisation of BSE-listed firms fell to Rs 206.18 lakh crore from Rs 200.81 lakh crore.
The broader NSE Nifty also tanked 568 points (3.76 per cent) to close at 14,529. During intraday trade, Nifty went below the 14,500 mark while Sensex fell by as much as 2,149 points, its worst performance since the height of the pandemic last summer in May.
“Domestic markets tumbled in line with global trend triggered by a sharp rise in bond yields. Increasing geopolitical tension between the US and Syria aggravated the selling. Q3 GDP data which is to be released today also added volatility in the Indian market,” said Vinod Nair, Head of Research at Geojit Financial Services.
Hemang Jani, Head of Equity Strategy, Broking & Distribution, Motilal Oswal Financial Servcies said, “Equity markets opened gap down following spike in global bond yields and extended its weakness further as the session progressed. Panic in global bond markets led to sharp rise in yields which spooked investors amid fears of interest rate cycle reversal.”
Friday saw bourses throughout the world. not only in India, close with heavy losses. In the Indian stock markets, banking stocks took the biggest hit with Bajaj Finserv, Axis Bank, and Kotak Mahindra Bank falling around 6 per cent. Rusmik Oza, Executive VP, Head of Fundamental Research at Kotak Securities said that since valuations were still on the higher side, investors would be wise to exercise caution.