It was a sea of red for the markets led by global cues and surging bond yields. Sensex and Nifty ended 4% Friday as the weakness wiped out the weekly gains. Sensex lost the 50,000 mark at close while Nifty managed to hold onto the 14500 mark. All 50 stocks in the Nifty ended in the red and financials were the main drag.
Rising bond yields were the culprit that sent jitters across the globe. Bond yields in the US have now surged back to the pre-pandemic levels and even though it indicates higher growth it signals possible inflation and cost of money rising. The Indian bond markets are also signaling the same adding to the nervousness.
It was not just the equity markets rupee hit Rs 73.5/$ in intraday trade, the lowest level in over two months. For the week the currency is lower by 1%, which would mark its biggest weekly fall in 10 months.