The resultant sell-off has led to a wipe out of ₹10 lakh crore in the combined market capitalisation of all BSE-listed companies, within the first two hours of trade.
Barring the Nifty IT, all other sectoral indices are trading with losses. The Nifty Media and Nifty Realty indices are down over 3% in today’s trade.
The PSU Bank Index, Nifty Energy, Pharma, Metal and Auto indices are also down between 2% to 3% in today’s trade.
Axis Bank is the top contributor to the Nifty downside, with a contribution of 38 points. SBI is contributing 22 points to the fall, while Bharti Airtel, L&T and Bajaj Finance are contributing 17-20 points to the fall.
In an interaction with CNBC-TV18, Rahul Arora of Nirmal Bang said that the seven-day rally seen on the Nifty, before Thursday and Friday’s fall, is the best time to sell as he expects further earnings downgrades going forward.
The Nifty is currently trading 300 points lower, while the Sensex is down 870 points. The Nifty Midcap index is down nearly 1,600 points, while the Smallcap index is also down over 3%.
“Uncertainty on global trade is bringing back a TINA (there is no alternative) feeling among global investors towards the Indian market due to its low exposure to global trade, but the recent rally has taken both the Indian equity and bond markets back to stretched valuations,” Vikash Jain of CLSA wrote in a note on Friday.
While Indian equities are down, Asian markets are outperforming. US futures, after three days of strong gains, are also trading above the flat line, led by tech shares.
