Sensex, Nifty End Sharply Lower As Stocks Plunge On Recession Fears

(RTTNews) - After a weak start Friday morning, Indian shares kept sliding lower and lower as the session progressed as selling intensified at several counters from across various sectors amid mounting fears over a possible recession in the U.S. due to rising interest rates.

With the Federal Reserve very likely to announce its third successive 75-basis point interest rate hike when it announces its policy next Wednesday, the mood in global stock markets has been quite bearish since Thursday.

Markets also reacted to a report from the World Bank that said the world could face a recession next year amid simultaneous tightening of monetary policy by central banks. The World Bank called for boosting production and removing supply bottlenecks to ease inflation.

Several indicators of global recessions are already "flashing signs", the report said. The global economy is now in its steepest slowdown following a post-recession recovery since 1970, it added.

The BSE benchmark Sensex ended with a loss of 1093.22 points or 1.82 percent at 58,840.79, after falling to a low of 58,687.17 in the final hour. The broader Nifty50 index of the National Stock Exchange, which dropped to 17,497.25, ended the session at 17,530.85, recording a loss of 346.55 points or 1.94 percent.

Technology, automobile, oil, metal, consumer durables and FMCG stocks tumbled.

Ultratech Cement, Tech Mahindra, Infosys, M&M, Wipro, Tata Consultancy Services and Nestle lost 3 to 4.5 percent.

Reliance Industries, HCL Technologies, HDFC, Bajaj Finserv and Dr Reddy's Laboratories shed 2 to 2.5 percent. State Bank of India, HDFC Bank, Asian Paints, Titan Industries, Hindustan Unilever and Tata Steel also ended notably lower.

Vedanta plunged more than 7 percent. Timken, Elgi Equipment, Kalpataru Power, Indiabulls Housing Finance, Emami, GNFC, PTC and Rallis Industries fell 5 to 6.5 percent.

The market breadth was very weak. Out of 3610 stocks traded on BSE, as many as 2532 stocks closed weak. 972 stocks ended higher, while 106 stocks settled flat.