Sensex, Nifty Down Firmly In Negative Territory On Global Growth Worries

(RTTNews) - Indian stock indices Sensex and the Nifty are down firmly in negative territory on Friday, extending losses from the previous session, amid concerns about global economic slowdown due to surging interest rates, and further imminent increases from central banks.

The Fed, the Bank of England, the European Central Bank, and the Swiss National Bank, have all raised their interest rates, and most of these central banks have said further increases are likely as inflation remains at elevated levels.

Wall Street tumbled overnight and most of the markets in Asia are also extending recent losses.

The benchmark BSE Sensex is down 396.80 points or 0.64% at 61,402.23. The index rebounded to 61,893.22 after a negative opening, but swiftly dropped into negative territory this morning.

The broader Nifty index of the National Stock Exchange, recovered to 18,440.95 after a weak start, is currently down 131.55 points or 0.71% at 18,283.35.

On Thursday, the Sensex and the Nifty shed 1.4% and 1.32%, respectively.

As selling remains widespread, all the sectoral indices are down in negative territory. PSU banks, metal, automobile, realty and media stocks are among the major losers.

Mahindra & Mahindra is down more than 2%. ITC is down 1.7%, while State Bank of India, Tata Steel, Bajaj Finserv, Tata Consultancy Services, HDFC, Maruti Suzuki, HDFC Bank and Kotak Bank are down 1 to 1.4%.

BPCL is down more than 2%. Adani Enterprises, Grasim Industries, Hindalco, Bajaj Auto, UPL and Coal India are down 1 to 1.6%.

Relaince Industries, which climbed more than 1% in early trades, is up 0.4% now. The stock surged on news that the company's retail arm launched FMCG brand 'Independence' in Gujarat.

The government's decision to cut windfall tax on crude oil and aviation turbine fuel (ATF) and reduce export tax on diesel is also aiding the RIL stock. The government has cut the tax on locally produced crude oil steeply to 1,700 rupees per tonne from 4,900 rupees, effective Friday.

Shares of state-run ONGC are up marginally in positive territory.

Nestle is up nearly 0.5%. Hind Unilever is gaining about 0.5%. HUL and Tata Consumer Products are reportedly in the race to acquire Girnar Food & Beverages, the Gujarat-based tea major, at a valuation of Rs 1,000-1,500 crore. Tata Consumer Products is down more than 1%.