Equity benchmark Sensex tumbled over 600 points in the opening session on Friday, mainly due to weakness in IT and financial stocks amid a weak trend in global markets.
The BSE gauge was trading 611.54 points or 1.04 per cent lower at 58,314.49 in early trade. Likewise, the Nifty fell 168.95 points or 0.96 per cent to 17,436.90.
Infosys was the top loser in the Sensex pack, shedding over 2 per cent, followed by Wipro, Tech Mahindra, HCL Tech, HDFC, Bajaj Finance, M&M and Bajaj Finserv.
On the other hand, NTPC and Nestle India were the only gainers.
In the previous session, the 30-share BSE Sensex settled 460.06 points or 0.79 per cent higher at 58,926.03. Likewise, the broader NSE Nifty jumped 142.05 points or 0.81 per cent to end at 17,605.85.
The Reserve Bank of India (RBI) on Thursday held its key lending rates steady at record low levels for the 10th straight meeting to support a durable recovery of the economy from the COVID-19 pandemic.
Elsewhere in Asia, bourses in Tokyo and Shanghai were trading with gains in mid-session deals, while Hong Kong and Seoul were in the red.
Stock exchanges in the US finished with deep losses in the overnight session, under pressure from crucial US inflation data, falling technology shares and rising benchmark bond yields.
“Stocks were largely lower in Asia on Friday after Treasuries and Wall Street shares sank on a jump in US inflation to a fresh four-decade high that stirred hawkish comments from a Federal Reserve official,” said Deepak Jasani, Head of Retail Research, HDFC Securities.
Jasani further added that the US Fed may have to act swiftly and aggressively to make sure inflation doesn’t get any worse.
“St. Louis Fed Chair James Bullard said the central bank should hike rates by 100 basis points over the next three meetings. He raised the possibility of considering a move in between scheduled policy reviews,” he said.
Meanwhile, international oil benchmark Brent crude slipped 0.16 per cent to USD 91.26 per barrel.
Foreign institutional investors (FIIs) remained net sellers in the capital market, as they sold shares worth ₹1,732.58 crore on Thursday, according to stock exchange data.