By Malvika Gurung
Investing.com — The domestic market crashed on Friday, mirroring weak cues from the broader Asian equities and an overnight fall on Wall Street over fears of aggressive monetary tightening by the Federal Reserve amid warnings of an imminent global recession.
At the time of writing, the equity benchmark indices tanked 1.23% and fell 726.97 points or 1.21%, led by a weakness in IT, auto and banking stocks. The market volatility barometer surged 4.4% to 19.2.
All sectoral indices listed under the Nifty umbrella traded deep in red, led by which plunged 2.7%, followed by and . slipped 0.45%.
Investors on Dalal Street lost wealth worth Rs 3 lakh crore in the session. Markets globally await the Fed’s meeting next week.
Dr V K Vijayakumar of Geojit Financial Services believes that the market has begun showing signs of fatigue. A major global concern is that the US Fed could oversteer the economy and hike interest rates too much too fast, pushing the US economy into a sharp recession.
“Sharply rising rates, rising bond yields and a rising dollar are negatives for equity. In this challenging environment it would be difficult for India to sustain the decoupling from the global trend which has been a recent pattern in India,” he added.