Sensex, Nifty50 snap three-day winning run as US data brings back rate hike woes

Indian equity benchmarks Sensex and Nifty50 succumbed to selling pressure on Friday, halting a winning run that lasted three back-to-back sessions, as worse-than-expected data from the world's largest economy once again fuelled concerns about a prolonged period of steel hikes in benchmark interest rates. Broad-based selling pressure weighed on the overall market, with financial, IT and FMCG shares being the worst drags on headline indices.

Both main gauges finished the day half a per cent weaker. The Sensex lost 316.9 points to end at 61,002.6 and the Nifty50 settled at 17,944.2, down 91.7 points from its previous close.

As many as 33 stocks in the Nifty50 basket finished lower, with Adani Enterprises, Nestle, IndusInd, SBI Life, HDFC Life, Mahindra & Mahindra and SBI being the top laggards. On the other hand, Larsen & Toubro, UltraTech, Bharat Petroleum, Asian Paints, Coal India and Grasim were the top gainers.

Among heavyweights, Infosys, TCS, ICICI Bank, Kotak Mahindra Bank and HDFC Bank were the biggest drags on both Sensex and Nifty50.

Barring the Nifty50 Oil & Gas, which eked out a gain of 0.1 per cent for the day, all of NSE's sectoral barometers closed in the red. 

Overall market breadth favoured the bears, with an advance-decline ratio of 4:5 as 1,503 stocks rose and 1,945 fell at the close on BSE.

"A lack of major triggers in the domestic market is brining global cues into play on Dalal Street. The US market is facing an unfavourable combination of higher-than-expected inflation and a stronger job market," said Vinod Nair, Head of Research at Geojit Financial Services.

Adani stocks made mixed moves, with Adani Enterprises and Adani Transmission falling 4-5 per cent, Adani Power rising five per cent and Adani Ports inching up 0.3 per cent. (Catch the latest in Adani-Hindenburg saga)

Nestle India shares declined by Rs 611.8 or 3.1 per cent to end at Rs 19,009 apiece on BSE, Analysts say concerns persist about the payment of royalty by multinational companies (MNCs) to their foreign parents, offsetting a strong set of results by Nestle India the previous day. 

Global markets

European markets began the day deep in the red, mirroring the losses across Asia, with the pan-continent Stoxx 600 index trading 0.8 per cent lower at the last count. 

S&P 500 futures were down 0.7 per cent, suggesting a weak start ahead on Wall Street. 

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