New Delhi
Indian shares posted broad-based declines on Friday, pressured by foreign fund outflows, and as global central banks took a hawkish stance and warned of surging inflation.
The NSE Nifty 50 index (.NSEI) fell 1.53% to 16,985.20 and the benchmark S&P BSE Sensex (.BSESN) dropped 1.54% to 57,011.74. Both the indexes shed nearly 3% this week after two consecutive weeks of gains.
“The emergence of a new COVID-19 variant, Omicron, inflation concerns and a hawkish turn of global central bankers have led to an increase in volatility in equity markets worldwide, including India,” said Shibani Kurian, head of equity research at Kotak Mahindra Asset Management Co.
“With inflation increasing in countries across the world, all eyes are on central bankers and the pace of liquidity normalisation adopted by them.”
This week, the Bank of England became the world’s first major central bank to raise interest rates since the pandemic hammered the global economy, following the U.S. Federal Reserve in signalling the risk of raging inflation.
As of Thursday’s close, foreign institutional investors have sold $728 million worth of Indian equities this week and $1.73 billion this month, according to Refinitiv Eikon.
