Indices Decline Amid Global Rate Concerns and China Demand Worries

18 Aug 2023 , 02:04 PM

Indian stocks experienced a decline on Friday, primarily due to a drop in IT stocks. This decline followed a global trend of falling equities driven by concerns about interest rates in the United States and apprehensions about deflation and demand in China.

Both key benchmarks have recorded a decrease of over 0.5% during the current week. If these losses persist, it would mark the fourth consecutive week of decline for the benchmarks, a situation not seen since May 2022.

The Sensex exhibited a decline of 254.77 points, equivalent to 0.39%, settling at 64,896.25. Similarly, the Nifty observed a drop of 72.00 points, or 0.37%, closing at 19,293.30. Among the listed companies, 1316 experienced gains, 1758 faced declines, and 104 remained unchanged.

IT companies, which rely significantly on revenue from the United States, witnessed a substantial reduction of up to 1.5%. This sector took the lead in terms of losses, attributed to growing concerns about interest rates in the largest global economy.

Notable losers on the Nifty included Hero MotoCorp, Coal India, TCS, Hindalco Industries, and Wipro. On the other side, Adani Enterprises, Adani Ports, Eicher Motors, Maruti Suzuki, and Axis Bank were among the gainers.

Shares of Adani Power, Adani Energy Solutions, and Adani Green experienced gains ranging from 3% to 5%. This increase was influenced by reports indicating that Abu Dhabi National Energy Company PJSC, known as TAQA, is contemplating an investment of up to $2.5 billion in the power businesses of the conglomerate.