Stock markets: In a shortened week, equity benchmarks fell over 4 pc as negative global cues, mounting inflation fears, foreign capital outflows, and a surprise interest rate hike by the Reserve Bank of India (RBI) weighed on mood. Because of Id-Ul-Fitr, stock markets were closed on May 3rd (Ramzan Id).
For the week ending May 6, investors lost Rs 11.80 lakh crore as a result of the selloff. BSE-listed companies' market capitalization fell to Rs 255.17 lakh crore on Friday, down from Rs 266.97 lakh crore on April 29. During the previous week, the 30-share BSE Sensex fell 2225.29 points, or 3.90 percent, to 54835.58. Similarly, the NSE Nifty 50 index fell 691.30 points, or 4.04 percent, to 16,411.25.
The Nifty index finished the week with a total of 41 stocks in the red. Apollo Hospitals Enterprises had the highest percentage of cracks at 13.93 pc. Eicher Motors (down 10.11 pc), Bajaj Finance (down 10.02 pc), Titan Company (down 9.89 pc), Bajaj Finserv (down 8.34 pc), and Hindalco (down 8 pc) were among the index's worst losses. Power Grid, ONGC, Tech Mahindra, Hero MotoCorp, and Coal India, on the other hand, climbed between 2 pc and 5 pc.
Overall, traders were concerned about rising interest rates, selling by foreign investors, rising inflation, and the Russia-Ukraine conflict throughout the week. Markets began the week on a gloomy note after the growth of eight main infrastructure industries slowed to 4.3 percent in March from 12.6 percent the previous month, owing to lower coal and crude oil output.
Meanwhile, markets continued to decline as the Reserve Bank of India announced an unexpected repo rate hike at an unscheduled meeting. With immediate effect, the RBI lifted the policy repo rate by 40 basis points to 4.40 percent. Core inflation is expected to continue strong in the coming months, according to the RBI, due to high domestic pump prices and pressures from the cost of critical medicines.
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