Sensex, Nifty fall for 2nd day on global economic slowdown concerns

Benchmark Sensex and Nifty closed lower for the second day in a row on Friday due to a decline in index major Reliance Industries, Hind­ustan Unilever, and Infosys amid concerns over global economic slowdown.

The 30-share BSE Sensex declined 236.66 points or 0.39 per cent to settle at 60,621.77 with 20 of its constituents ending in red. During the day, it fell 273.18 points or 0.44 per cent to 60,585.25. 

The broader NSE Nifty fell by 80.20 points or 0.44 per cent to end at 18,027.65 as 36 of its stocks closed with losses.

“Shaking off the weak lead from Wall Street, domestic indices attempted to trade higher due to economic optimism that stemmed from China’s reopening. However, concerns over the global economic slowdown eventually caught up and dragged markets lower,” said Vinod Nair, Head of Research at Geojit Financial Services.

Joseph Thomas, Head of Research, Emkay Global Financial Services said that the equity market continued to trade lower in sync with developments abroad, mainly the US markets.

“While the probability of the Fed hiking rates further to slay the demon of inflation is quite high, the consequences of the rate action over a period of time translating itself into an economic slowdown is occupying the minds of the investors,” Thomas said.

From the Sensex pack, Hindustan Unilever fell the most by 3.84 per cent amid concerns over increase in royalty and central services arrangement fee to its parent Unilever group.