Shares were set for their first weekly decline in six as markets fell further on Friday, fueled by losses in banking and auto stocks and concerns around a global economic recovery and inflationary pressures.
Blue-chip NSE Nifty 50 index fell 0.65 per cent to 17,503.20 as of 2:07 pm and benchmark S&P BSE Sensex fell 0.69 per cent to 58,719.72, extending losses in the fourth session.
Both the indices have lost nearly two per cent so far this week in what would be their biggest weekly fall since February, as markets try to consolidate following recent liberal monetary policies and easing of COVID-19 restrictions .
On Friday, there are fears that inflation may persist even after the peak of global growth, and hopes the US Federal Reserve will wreck markets around the world in the coming months.
While the domestic positivity hasn’t changed, Siddharth Purohit, a research analyst at SMC Global Securities, said volatility in the market will continue this month as global events and the domestic earnings season get underway.
Auto stocks fell 1% on September sales data, with Maruti Suzuki down 2.8% a day after warning that total vehicle production at its two plants in October was about 60% of normal levels due to global chip shortages. Will happen.
Banking stocks fell 0.8%, HDFC Bank fell over 1%, while consumer goods stocks fell 0.7%.
Energy stocks advanced, with Indian Oil Corp rising 1% to top the Nifty 50.
SMC’s Purohit said a rise in the prices of locally produced gas from older fields, amid rising global gas prices, helped the sentiment.