Indian stock markets closed on a negative note on Friday as global sell-off returned which led a bloodshed activity in US markets on Thursday with Sensex losing as much as 1,493 points in last six days and Nifty hitting a low of 2018. Since Friday last week, shares of heavyweight companies such as HDFC Bank, Reliance Industries, ICICI Bank, HDFC, Infosys, Bharti Airtel and State Bank of India have plummeted massively. Today only, global markets were marked down by the Dow Industrial’s cascading activity on Thursday following which the S&P BSE Sensex settled down 407 points and Nifty tumbled 121 points in a highly volatile trading session on Friday. A huge volatility was observed in the Indian equities as India Vix, the indicator of volatility shot up nearly 15% to 20.4225 in the intraday before ending up 8.2% at 19.23 on Friday.
During the three-day sell-off, up until 6 February, a heavy jolt was observed in Indian stock markets as about 1,710 points were washed away from the 30-share barometer Sensex including a massive intraday slump of 1,274 points on Tuesday (6 February 2018). An extremely volatile trading session was witnessed in India’s stock market on Tuesday this week, as the India Vix rose 44.23% in the intraday trades to hit a 52-week high of 23.1575.
The S&P BSE Sensex lost 407.4 points or 1.18% to finish at 34,005.76 whereas NSE Nifty shed 121.9 points or 1.15% to conclude at 10,454.95. The global sell-off returned on Thursday which steered a rout in US stock market following it Dow Jones Industrial Average witnessed plunged over 1,000 points. In the morning trades, 30-share barometer BSE Sensex nosedived about 563 points to a one-and-half-month low of 33,849.65 with shares of blue-chip companies such as ICICI Bank, Axis Bank, Yes Bank, HDFC, Infosys, State Bank of India, Bharti Airtel, Adani Ports, HDFC Bank, Wipro, Bajaj-Auto, Kotak Mahindra Bank, L&T, Tata Motors, IndusInd Bank, Hero MotoCorp and Maruti Suzuki plummeting 1-3%.
Almost all of the sectoral, as well as, broader market indices of National Stock Exchange closed down in the red with Nifty Bank, Nifty Fin Service, Nifty PSU Bank, Nifty Pvt Bank, Nifty 100, Nifty 200, Nifty 500 sinking the most. Earlier on Thursday, US equities witnessed a massive sell-off due to which the key equity index Dow Jones Industrial Average dived more than 4% after a nine-year bull run. US equities posted massive gains in the January 2018 and were repeatedly making and breaking fresh record highs. The stock markets began to decline from last Friday when US Labor Department said workers’ wages grew at a fast rate in January. The Dow Jones Industrial Average fell 1,032.89 points or 4.15% to 23,860.46, the S&P 500 lost 100.66 points or 3.75% to 2,581 and the Nasdaq Composite dropped 274.83 points or 3.9% to 6,777.16