NEW DELHI: Equity indices fell for second straight session on Friday as rising US Treasury yields spooked investors. The benchmark BSE sensex plunged 441 points or 0.87 per cent to close at 50,405; while the broader NSE Nifty moved 142 points or 0.95 per cent lower to settle at 14,938.
Major laggards in the BSE pack included IndusInd Bank, SBI, Dr Reddy’s, NTPC, ICICI Bank and HCL Tech with their stocks down as much as 4.79 per cent.
On the NSE platform, all the sub-indices finished in red with Nifty PSU Bank sliding as much as 3.93 per cent.
“Chances of foreign investors pulling out some money from emerging markets like India have strengthened as US bond yield increases,” Gaurav Garg, head of research at CapitalVia Global Research, told news agency Reuters.
Foreign investors had offloaded equities worth Rs 223.11 crore on a net basis in Indian capital markets on Thursday, according to exchange data.
“The ‘bond bears vs equity bulls’ game continues in the US market with similar reverberations in other developed and emerging markets. The highly valued Nasdaq appears to be in a short-phase of reversion to mean, having declined 10 per cent from record highs,” V K Vijayakumar, chief investment strategist at Geojit Financial Services told PTI.
“The US 10-year yield has again spiked to 1.575 per cent giving further ammunition to bond bears,” he added.
Although a jump in oil explorers on higher crude prices limited some losses.
Oil and Natural Gas Corp advanced 1.95 per cent, as oil prices rose after Opec (Organization of the Petroleum Exporting Countries) and its allies agreed not to increase supply in April.
Agrochemical maker Heranba Industries Ltd surged 30 per cent in its market debut following strong investor response to its $85 million initial public offering last month.
(With inputs from agencies)