A man looks at a screen showing budget news in front of the Bombay Stock Exchange (BSE) building in Mumbai, India, on February 1, 2022.
BENGALURU, Sept 16 (Reuters) – Indian shares fell more than 1% on Friday, as benchmark indices’ gains for the week were dragged down by technology and auto stocks, amid a broader global sell-off on post-recession worries.
The NSE Nifty 50 Index (.NSEI) was down 1.03% at 17,693.45 by 0456 GMT and the S&P BSE Sensex (.BSESN) was down 1.03% at 59,316.90. Both indices look poised to post weekly losses after adding 1.68% on a weekly basis.
“The market is starting to show some signs of fatigue. Globally, the main concern right now is the Fed (Federal Reserve) taking control of the economy and expanding at a higher rate, which could push the US economy into a deep recession,” VK Vijayakumar, chief investment strategist at Geogit Financial Services, said in a note. They said.
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“In this challenging environment, it will be difficult for India to continue to break away from global trends,” Vijayakumar added.
Meanwhile, foreign investors sold a net $173 million in Indian stocks on Thursday, extending a seven-day long bull run, according to Refinitiv data.
The Nifty IT index (.NIFTYIT) was the worst performer among sectors, falling as much as 2.2% in its fourth straight session of losses, while the Nifty Automobile index (NIFTYAUTO) fell 1.9%.
Automakers Mahindra and Mahindra Ltd ( MAHM.NS ), Tata Motors Ltd ( TAMO.NS ) and IT services major Tata Consulting Services Ltd ( TCS.NS ) were among the drags on the Nifty 50, each falling more than 2%.
Broader Asian stocks fell following losses on Wall Street on fears of tightening by the Fed amid warnings of a global recession from the World Bank and International Monetary Fund.
Ratings agency Fitch earlier this week cut India’s GDP growth forecast for the current fiscal year from 7.8 percent to 7 percent amid slowing global economic tensions, higher inflation and tighter monetary policy. Read more
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Reporting by Rama Venkat in Bengaluru, additional reporting by Gaurav Dogra; Editing by Dhanya Ann Thoppil and Rashmi Aich
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