Indian stock markets tank nearly 2% — here are the top losers in IT, Banking and other sectors

• Indian equity markets started the day with a sharp fall following their global peers as the US market witnessed a huge fall on Fed’s aggressive interest rate plans to tame inflation.
• The weak market sentiment is also impacted by the FII outflows and Indian central bank’s snap increase in rates.
• HCL Technologies, Tata Motors and Wipro are some among top losers in the opening trade.
• Check out the top losers on Nifty50 and Sensex in the first hour of trade today.

The Indian stock markets opened on a negative note today following their global peers, triggered by a massive correction in US stock markets following US Fed’s rate hikes and realising the aggressive outlook to tame inflation.

US benchmark index, Nasdaq dropped nearly 6% as shares of large companies like Alphabet, Apple, Microsoft, Meta, Tesla and Amazon tumbled steeply.

On Wednesday, the US central bank had increased its benchmark interest rate by 50 basis points.

HCL Technologies, Tata Motors and Wipro are some of the big victims of Friday’s market sell-off.

“US markets witnessed a relief rally on Wednesday after the FOMC meeting but it tumbled on Thursday due to more anxiety over rising interest rates. Pound also fell on fears of a UK recession. Asian markets are trading in red in the early Friday trade. US non farm payrolls data and unemployment rate will be announced today which may decide the direction of global markets,” said Mohit Nigam, head of portfolio management services at Hem Securities.

At home, Indian central bank RBI suddenly announced a 40 basis point rise in benchmark interest rates. The announcement was unlikely as RBI has been behind the curve till now as it was waiting for inflation to cool down even though central banks across the world have been hiking rates. Rising global prices of fuels and other commodities are the factors influencing such decisions.

Here are the worst performing stocks in the market on May 6.

FII sell-off worsens
The market sentiment has been jittery since the start of 2022 as foreign institutional investors (FIIs) have been pulling out their investments every month since then on expectation that the US central bank will hike interest rates aggressively.

So far in 2022, FIIs have sold equities worth ₹1.3 trillion from the Indian stock market, as per data by central depository services (India).

Several countries across the world have been trying to hike interest rates and control inflation and so is the largest economy US. The rise in US interest rates does not bode well for the Indian markets as foreign investors pull out money from risky markets like India and invest in safe assets like the debt market in the US.



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