Sensex falls 407 points to 34,005, Nifty at 10,454; YES Bank, ICICI Bank, HDFC top losers

The Sensex and Nifty closed lower in Friday's trade on US markets correction on high govt bond yields which send the local market into a tailspin.

While the Sensex closed 407.40 points lower at 34,005, the Nifty fell 121 points to lose at 10,454 level.

Of 30 Sensex stocks, 24 closed in the red.

YES Bank (2.84%), ICICI Bank (2.33%) and HDFC (2.13%) were the top Sensex losers.

Tata Steel (1.83%), Dr Reddy's (0.73%) and Asian Paints (0.67%) gained most on the Sensex.

Tata Steel posted a five-fold rise in third-quarter profit, but missed analysts' expectations.

For the quarter ended December 31, profit was Rs 1294 crore ($200.99 million), compared with Rs 243 crore in the same period a year earlier, the steelmaker said in a statement.

Banking stocks led the losses with BSE Bankex falling 514 points to 28,882 level.

Karthikraj Lakshmanan, Senior Fund Manager - Equities, BNP Paribas Mutual Fund said, "Trend in global interest rates and the subsequent impact on inflation, global economic growth as well as flow of funds, influenced investor sentiment through the week. A second straight weekly decline in jobless claims in the US pointed to a strong job growth momentum in the economy, thus perpetuating fears of higher inflation and consequently faster rate hikes in the US. "

YES Bank (2.84%), ICICI Bank (2.33%) and Axis Bank (1.93%) were the top losers on the bankex.

Auto stocks too contributed to the day's closing low with the BSE auto falling 239 points to 25,044 level.

Bank Nifty fell 457 points or 1.76% to 25,463 level.

"Additionally, the Bank of England (BoE) yesterday, 8 February 2018 said that it is likely to raise interest rates earlier and faster than previously expected to dampen the effects of a stronger global economy on UK inflation. Rising global rates are likely to impact the flow of funds to riskier assets like emerging markets, " Lakshmanan added.

Market breadth was mildly positive with 1,404 stocks closing higher against 1370  ending  lower on BSE. 136 stocks were unchanged.

Global markets

A 4 percent drop in Chinese shares dealt reeling world stock markets a fresh blow on Friday, as nerves about rising borrowing costs and soaring volatility put them on course for their worst week since the height of euro zone crisis.

Japan's Nikkei had also shed 2.3 percent, en route to a weekly loss of 8.1 percent - its biggest since February 2016 too.

For MSCI's broadest index of world shares, the 47-country ACWI the slump was 6.2 percent, which as long as it is still more than 6.1 percent when US markets close later will be the biggest loss since September 2011.

While Nikkei fell 508 points or 2.32%, Taiwan's T Sec 50 Index was down 156 points or 1.49%.

Hang Seng sinked 943 points or 3.10% and Shanghai Composite Index was down 4.05% or 132 points.

The Dow Jones industrial average finished the session down 1,032.89 points at 23,860.46 - entering correction territory.