Closing Bell: It's a bad Friday on Dalal Street; all sectors close in red

Ahead of the all-important FOMC meet, domestic equity bourses BSE Sensex and Nifty 50 crashed nearly 2% each in Friday's trading session, as bears tighten their grip.

Indian equity market suffered sharp cuts today after a gap-down start as rate hike guidance from the ECB and the upcoming US inflation data spooked investors globally. The headline indices swung back into the red after gaining good ground in the previous trading session. In today's trade selling pressure in information technology, financial and energy shares dragged the indices.

At the closing bell on June 10, the Sensex tanked by 1,017 points or 1.84% to close at 54,303, while the broader NSE Nifty 50 plunged by 276 points or 1.68%, to settle at 16,202.

Among the top BSE losers were index heavyweights such as Kotak Mahindra Bank, Bajaj Finance, Housing Development Finance Corporation (HDFC), Reliance Industries Ltd (RIL), Wipro, Infosys, and Tech Mahindra. Top gainers include Asian Paints, UltraTech Cement, Dr Reddy’s Laboratories, Titan Company, IndusInd Bank, and Nestle India. In the top drags, Bajaj Finance was the top loser as the stock crashed 4.08% to Rs 5,658.

Sector-wise Nifty Bank index fell by 1.7% to settle at 34,484. India VIX, the volatility index, grew 2.3% to finish at 19.6 levels. On the market breadth, 1,309 shares advanced while 1,999 declined on BSE.

In another major development, the US inflation data, due today will set the tone for the US Fed’s next policy decision. As a 50 basis point increase is very much in the cards, the commentary for future action could be influenced by today’s data. Also, the ECB announced on Thursday that it is preparing a quarter-point interest rate hike in July, with a larger increase as inflation heats up in the region exceeding 8%.