Sensex tanks over 1,000 points in opening trade
What's the story
Equity benchmark Sensex tanked over 1,000 points in the opening session on Friday tracking losses in index majors ICICI Bank, HDFC twins, and Reliance Industries amid a negative trend in global markets. After touching a low of 49,950.75, the 30-share BSE index was trading 1.82 percent lower at 50,112.10. Similarly, the broader NSE Nifty was quoting 1.79 percent down at 14,826.95.
Information
Nestle India gained while Induslnd Bank lost a good deal
IndusInd Bank was the top loser in the Sensex pack, shedding around 3 percent, followed by ICICI Bank, Axis Bank, HDFC, M&M, SBI, HDFC Bank, Reliance Industries, and Tech Mahindra. On the other hand, Nestle India, Maruti, HUL, and Bharti Airtel were among the gainers.
Buy and sell
Foreign institutional investors were net buyers
In the previous session, Sensex spurted 0.51 percent to finish at 51,039.31, and Nifty climbed 0.77 percent to 15,097.35. Foreign institutional investors (FIIs) were net buyers in the capital market as they purchased shares worth Rs. 188.08 crore on Thursday, as per exchange data. US equities witnessed a steep fall as a sharp spike in bond yields dampened investors' sentiments.
Further details
What affected the rise and fall in prices?
"Recent rise in bond yields globally and concerns regarding higher commodity prices weighed on investors' as these two elements reduce the future value of cash flows and earnings," said Binod Modi Head-Strategy at Reliance Securities. Elsewhere in Asia, Shanghai, Hong Kong, and Tokyo were trading with significant losses. Meanwhile, the global oil benchmark Brent crude was trading 0.62 percent lower at $65.70 per barrel.