Indian benchmark indices Sensex and Nifty ended more than 1 per cent lower on Friday. The Sensex was down 1,017.03 points or 1.25 per cent at around 10.51 a.m. to 80,272.93, while the Nifty was down 306.80 points or 1.25 per cent to 24,241.90.
The market trend remained negative. In the National Stock Exchange, 340 stocks were trading in green, while 2,047 stocks were in red.
The market remained in commotion due to heavy selling by Foreign Institutional Investors, as well as the rising US bond yields and ongoing conflicts in the Middle East. On the other hand, the move to be taken by Federal Reserve on interest rates on December 18 has increased concern in the market.
On December 12, foreign institutional investors sold shares worth Rs 3,560.01 crore in the Indian market, while domestic institutional investors bought shares worth Rs 2,646.65 crore on the same day.
According to market experts, "In the near term, the market has a headwind and a tailwind. The headwind is the resumption of selling by the FIIs who sold stocks for Rs 3,560 crore yesterday. Given the high valuations in India FIIs are likely to sell more at every market rise.
Selling has been profitable for FIIs since the dollar has been appreciating after the US election. The tailwind which can support the market is the declining inflation," they added.
In the Sensex pack, Tata Steel, JSW Steel, IndusInd Bank, Axis Bank, Bajaj Finserv, SBI, M&M and Bajaj Finance were the top losers.
Nifty Bank was down 839.65 points or 1.58 per cent at 52,376.80, while Nifty Midcap 100 index traded at 58,082.85 after falling 938.85 points or 1.59 per cent. Nifty Smallcap 100 index traded at 19,074.70 after falling 391.85 points or 2.01 per cent.
Heavy selling was witnessed in Nifty PSU Bank, metal, realty, auto, IT, pharma and FMCG sectors.
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