Global markets also came off their highs as investors digested the fallout of a tighter monetary policy regime.
The Sensex gained as much as 807 points, or 1.4 per cent, in intra-day trade only to give up all the gains to end at 57,200, with a loss of 77 points. The Nifty came off 263 points from day’s high of 17,373 to finish the week at 17,102, down 8 points over previous day’s close.
Stocks worldwide have tumbled amid a spike in the US bond yield in anticipation of four rate hikes by the US central bank this year. On Thursday, after their two-day policy meeting, Fed officials laid the ground for higher rates, with Chair Jerome Powell saying America’s strong economy may no longer require monetary support.
“Concerns around inflation, higher bond yields and potential rate hikes have sparked a risk-off globally, leading to elevated FPI outflows. Domestic equities have also borne the brunt of rich valuations after a relentless rally post the bottom in March 20. While the Nifty-50 has corrected just 8 per cent from its October 2021 peak, it is hiding the stress in the broader markets. Concerns around the cost of equities going up have taken a brutal toll on high-growth stocks belonging to the tech domain,” wrote Gautam Duggad, head of research, institutional equities, Motilal Oswal Financial Services, in a note.
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