Indian equity benchmarks Nifty 50 and Sensex stayed under pressure on Friday, mirroring weakness across global markets as investors remained concerned about more of aggressive rate hikes in central banks’ ongoing fight against sticky inflation.
Adani stocks dragged Nifty 50 more as the index is trading significantly lower than its counterpart, BSE S&P Sensex 30.
High stock valuations at present also may have kept investors at bay for the time being.
Indian shares added to losses as hawkish RBI soured risk appetite and domestic benchmarks began consolidating, while Adani Group stocks tumbled after a report of U.S. attorney inquiries to investors holding large stakes.
The benchmark S&P BSE Sensex fell 260 to close at 62,979, while the blue-chip Nifty index slipped 105 pts to end at 18,665. Sensex has declined around 0.7% this week and Nifty has shed a per cent to snap a four-week winning streak.
Thirteen of the 15 broad-based Nifty sectoral indices declined with the high-weightage IT lost after Accenture on Thursday signalled a continued cutback on IT spending by clients and forecast quarterly revenue below Wall Street estimates.
Adani Group companies declined between 2% to 5% after Bloomberg News reported that the U.S. Attorney’s Office in Brooklyn, New York, had sent inquiries in recent months to investors with large holdings in Adani firms.
Adani Enterprises, Adani Ports, BPCL, and Tata Motors were the biggest laggards, while IndusInd Bank and Asian Paints gained. Metal, PSU Bank, Auto Media and IT shed the most, with the Pharma index ending with minor gains.
Global stocks were poised to end the week lower on Friday as investors bet on interest rates remaining higher for longer to quell stubborn inflation, helping to lift the dollar and send oil tumbling.
Japan’s Nikkei share average surrendered early gains to end lower on Friday, posting its first weekly drop after 10, as investors booked profits ahead of an expected rush in sell-off at the end of the month for portfolio rebalancing.
The Nikkei index fell 1.45% after rising as much as 0.8% earlier. The index is down 2.7% for the week and posted its first weekly loss in 11 weeks. The broader Topix slipped 1.38%.
Hong Kong stocks extended losses on Friday, posting their sharpest weekly decline since March as hawkish comments by U.S. Federal Reserve Chair Jerome Powell dampened market sentiment.
Hong Kong’s Hang Seng Index dropped 1.71%, while the Hang Seng China Enterprises Index declined 1.71%. The Hang Seng index is down 5.7% this week in a 4-day losing streak, marking its biggest weekly drop since March 10.
China’s mainland financial markets were closed on Friday for the Dragon Boat Festival holiday. Markets will resume trading on Monday, June 26.
European shares opened lower at the end of a central bank policy-packed week that reinforced views that higher interest rates could stay for longer, while shares of Siemens Energy plunged as it withdrew its annual profit outlook.
UK’s benchmark indexes extended their slide led by a decline in homebuilders, as investors’ concerns over recession heightened following the Bank of England’s outsized interest rate hike