The Indian equity markets ended the week on a negative note as both S&P BSE Sensex and NSE Nifty 50 tanked. The weak global markets did not help the cause either. The market sentiment was considerably down on the back of Franklin Templeton Mutual Fund deciding to close six of its debt fund plans.
The Association of Mutual Funds of India (AMFI) has ascertained to the investor community that most of the investments are made in high-quality instruments. It also assured that proper steps would be taken to make sure that enough liquidity is on offer for regular operations.
The BSE Sensex ended Friday 1.7% or 536 points lower. It ended the week at 31,327.2 points. The NSE Nifty also did not have a good day at the office. It closed Friday at 9,154.40 points, down 1.7% or 159.5 points. All sectoral indices apart from Nifty Pharma ended in the red.
The Nifty Bank index tanked to touch 19,587 points, losing 3.36%. The Nifty Financial Services lost nearly 4% to end the day at 9,432 points. The NSE Nifty PSU Bank slid almost 4% to close the week at 1,263 levels. The S&P BSE MidCap and S&P BSE index collapsed around 1.7% and 1.4% respectively to close Friday at 11,464 and 10,634 points respectively.
The BSE Sensex was dragged down mostly by banking stocks. Bajaj Finance and IndusInd Bank closed Friday 9% and 6.5% down respectively. HDFC Bank closed almost 2% lower while its twin HDFC dropped 5% to mark the end of Friday. Reliance Industries Limited (3%) gained the most among all Sensex stocks.
Asian stocks and the US stock futures dropped on Friday. The losses were fueled by the concerns over the development of drugs to treat the ravaging COVID-19 infection being delayed, and the US economy started to show signs of being harmed by the latest pandemic.
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