Sensex, Nifty Tumble On Growth Worries; Technology Stocks Drifting Lower

(RTTNews) - Indian shares are languishing in negative territory Friday morning after opening on a weak note amid concerns the Federal Reserve's moves to tame inflation through aggressive rate hikes might result in the world's largest economy falling into a recession.

The Fed, which is scheduled to meet next week, is widely expected to announce another 75-basis point rate to fight soaring inflation.

Technology, automobile and bank stocks are among the most prominent losers.

The BSE benchmark Sensex, which plunged to 59,154.73, is down 611.67 points or 1.02 percent at 59,322.34. The broader Nifty50 of the National Stock Exchange, which dropped to 17,642.80, is currently down 187.00 points or 1.05 percent at 17,690.40.

Tech Mahindra is down more than 3 percent, Tata Consultancy Services and Infosys, both are down by about 2 percent, Wipro is lower by 1.7 percent, and HCL Technologies is declining 1.55 percent.

Mahindra & Mahindra is down 2.7 percent, Hero Motocorp is down nearly 4 percent and Tata Motors is sliding 2 percent, while TVS Motor, Escorts, Bajaj Auto and Ashok Leyland are lower by 0.8 to 1.3 percent.

Larsen & Toubro, Reliance Industries, NTPC, HDFC, UltraTech Cement, Power Grid Corporation and Nestle are down 1 to 2 percent.

Vedanta is down nearly 6 percent after the company issued clarification regarding the proposed business of manufacturing semiconductors. The company cleared the air around semiconductors' business, saying it is with the holding company, Volcan Investments Limited.

"We reiterate that the proposed business of manufacturing semiconductors is not under Vedanta Limited and we understand that it will be undertaken by the ultimate holding company of Vedanta Limited, Volcan Investments Limited," Vedanta said in a regulatory filing on Thursday.

IndusInd Bank is gaining about 3.25 percent. Sun Pharmaceuticals is rising 1.8 percent and Cipla is gaining 2.3 percent.

Tata Metaliks is gaining nearly 5.5 percent buoyed by news about the company inagurating phase-1 of expansion project of ductible iron pipe plant at Kharagpur.