Sensex falls over 600 points on weak global cues

The BSE Sensex fell more than 2% on Friday to its lowest in nearly 14 months, on weak global cues amid caution ahead of a key US jobs report due later in the day.

A strong jobs number could cement optimism on the global economy and boost share prices but it could rekindle speculation of an early rate hike by the Federal Reserve, which could hurt risk assets, particularly in emerging economies.

Asian shares extended losses on Friday as caution over a US jobs report overshadowed signals from the European Central Bank that it is willing to take further steps to shore up the European economy. China’s financial markets were closed on Friday for a national holiday.

“The uncertainty over the US Fed rate hike is spooking global markets and the Nifty is no exception,” said Arun Gopalan, vice-president at brokerage Systematix Shares & Stocks.

“We could witness further downside on the Nifty if the Fed hikes rates in September.”

The BSE Sensex was down 1.94% after falling as much as 2.22% to 25,193.41, its lowest since July 15, 2014.

The broader Nifty was 2% lower after declining as much as 2.34% to 7,639.50, its lowest since August 11, 2014.

Both indexes were headed for their fourth straight weekly loss.

All sectors were in the red with financial stocks the biggest losers.

ICICI Bank fell 3.7%, while Housing Development Finance Corp dropped 2.65%.

Market heavyweight Reliance Industries Ltd was down 1.9%.

IT stocks Infosys and TCS fell 1.7 and 1.34%, respectively.

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Source:Timesofindia

Sensex