D-Street extends losses for 4th day on outflows, oil highs
oil prices weighed down investor sentiment. The losing run resulted in the benchmark indices shedding about 2.7% this week — their highest weekly loss since February.
NSE's Nifty fell 68.10 points, or 0.34%, to close at 19,674.25.
BSE's Sensex declined 221.09 points, or 0.33%, to end at 66,009.15. Both indices have dropped close to 2.3% in the previous four trading sessions after the record-breaking run the previous week that resulted in the Nifty crossing the 20,000 mark.
Money managers said rising US bond yields following the comments from the American central bank that one more interest rate increase could be in the offing have dampened appetite for Emerging Market (EM) assets like India.
«US bond yields have moved up sharply which has led to some nervousness in the emerging markets,» said Amit Gupta, senior vice president and fund manager, ICICI Securities.
«However, Indian bond yields have remained subdued which means the downsides in equity markets can be arrested.»
He said PSU banks tend to do well when Indian bond yields are subdued.
Elsewhere in Asia, most markets ended higher on Friday with China gaining 1.55%, Hong Kong rose 2.3%, Taiwan advanced 0.2% and Indonesia ended 0.4% higher. South Korea moved down 0.3%.
The pan-Europe index Stoxx 600 was down 0.3% at the time of going to print.
At home, foreign portfolio investors continued to pull money out of the stock market, selling shares worth '1,326.74 crore on Friday.
Domestic institutions were buyers to the tune of '801.27 crore.
Analysts said that a correction was due following the pace of the upmove in the markets.
«The markets witnessed a sustained rally for 11 consecutive weeks. The correction, though expected, was a severe one of almost 600 points,» said
