Sensex accumulates more than 550 points when bank and financial stocks fall; Ingenious below 9,200

NEW DELHI: Equities indices slumped in Friday's opening session with benchmark BSE sensex falling more than 550 points, dragged down by IT, banking and financial stocks.

The BSE index of 30 stocks fell 575 points or 1.80 percent to 31,288; while the broader NSE Nifty fell 132 points or 1.42 percent to 9,182.

Top laggards in the sensex bundle include ICICI Bank, Bajaj Finance, IndusInd Bank, Axis Bank, HDFC twins, and SBI with their shares falling as much as 5.02 percent.

At NSE, with the exception of Nifty Pharma, all other sub-indices were trading in red with Nifty Private Bank, Bank and Realty which were down as much as 3.36 percent.

The domestic market opened on a negative note as global stocks fell amid projections of a severe coronavirus-led hit to the global economy, traders said.

Financial stocks took a beating after Franklin Templeton announced it would liquidate six-yield-oriented credit funds across the country, citing a severe market dislocation and illiquidity caused by the coronavirus pandemic.

The number of coronavirus cases in the country has crossed the 20,000 mark and more than 700 people have lost their lives.

On the macro front, Fitch Ratings cut India's economic growth projections to 0.8 percent in the current fiscal year 2020-21, saying that an unparalleled global recession was underway due to the COVID-19 crisis.

The agency has made big cuts in global GDP forecasts. Global economic growth is now expected to drop 3.9 percent in 2020, a recession of unprecedented depth in the post-war period.

Additionally, reports on Thursday said a possible antiviral drug failed in a clinical trial, citing documents accidentally released by the World Health Organization (WHO).

In the previous session, the BSE sensex rose 483.53 points or 1.54 percent to close at 31,863.08, a six-week high. The broader NSE Nifty also advanced 126.60 points, or 1.38 percent, to settle at 9,313.90.

Meanwhile, foreign portfolio investors were net sellers on the capital market on Thursday as they downloaded capital shares worth Rs 114.58 million, according to provisional exchange data.

(With contributions from the agency)