Benchmark Sensex declined by 365 points and Nifty settled below the 19,300 level in a volatile trade on Friday as financials, IT and oil shares took a hit amid concerns over potential rate hikes and weak trend in global markets.
Falling for a second day in a row, the BSE Sensex closed lower by 365.83 points or 0.56% at 64,886.51. During the day, it dropped 519.77 points or 0.79% to 64,732.57.
The NSE Nifty declined by 120.90 points or 0.62% to end at 19,265.80.
From the Sensex pack, Larsen & Toubro, JSW Steel, IndusInd Bank, Power Grid, ITC, Mahindra & Mahindra, NTPC, HDFC Bank, ITC, Reliance Industries and Tata Motors were among the major laggards.
Bajaj Finserv, Asian Paints Bajaj Finance, Bharti Airtel and Axis Bank were among the gainers.
“Investor caution is evident globally, as concerns about potential rate hikes dominate the prevailing sentiment ahead of the Jackson Hole meeting. Furthermore, the minutes from the RBI MPC meeting reiterated their dedication to managing inflation within the target range, given the elevated domestic inflation levels,” said Vinod Nair, Head of Research at Geojit Financial Services.
In Asian markets, Seoul, Tokyo, Shanghai and Hong Kong settled in the negative territory.
European markets were trading in the green. The U.S. markets ended lower on Thursday.
Global oil benchmark Brent crude climbed 1.25% to $84.40 a barrel.
Foreign Institutional Investors (FIIs) were buyers on Thursday as they bought equities worth ₹1,524.87 crore, according to exchange data.
The BSE benchmark had pared early gains to settle 180.96 points or 0.28% lower at 65,252.34 on Thursday. The Nifty declined 57.30 points or 0.29% to settle at 19,386.70.