Indian equity indices closed lower on Friday, dragged by financial, auto and IT stocks on concerns about delays in US rate cuts, while small and midcap stocks declined as stress test results of mutual funds trickled in.
The 30-share BSE benchmark Sensex declined 454 points or 0.62% to settle at 72,643. The broader NSE Nifty dropped 123 points or 0.56% to end at 22,023.
From the Sensex pack, M&M, Tata Motors, NTPC and HCL Tech were the top laggards, falling 2-5%. On the other hand, only Bharti Airtel, Bajaj Finance, Bajaj Finserv, IndusInd Bank and TCS ended with gains.
Nifty IT index declined 0.5% following a hotter-than-expected U.S. inflation reading, which fuelled worries over the Federal Reserve’s future rate trajectory. IT companies earn a major share of their revenue from the U.S.
Oil marketing companies such as Bharat Petroleum Corporation, Hindustan Petroleum Corporation and Indian Oil Corporation dropped between 4% and 6% after announcing reductions in petrol and diesel prices.
