Indian shares experienced a significant decline on Friday, influenced by a global sell-off prompted by weak manufacturing data and mixed tech earnings that elevated concerns about a potential U.S. recession.
The contraction of U.S. manufacturing activity in July, coupled with a surge in weekly jobless claims to an 11-month high, has intensified apprehensions about an impending recession and raised doubts about the Federal Reserve's potential delay in cutting interest rates.
Market participants are now eagerly awaiting the U.S. payrolls data, expected later today, which could provide further insights into the economic state and guide the Federal Reserve's future rate decisions.
The benchmark S&P BSE Sensex concluded the session down by 885.60 points or 1.08%, closing at 80,981.95. Similarly, the broader NSE Nifty index dropped by 293.20 points or 1.17%, settling at 24,717.70.
The declines were led by metal and auto stocks, with significant losses in companies like Hindalco Industries, JSW Steel, Maruti Suzuki India, Tata Motors, and Eicher Motors, all falling between 4-5%.
Conversely, certain stocks displayed positive performance. Sun Pharma, Dr. Reddy's Laboratories, HDFC Bank, and Divis Laboratories saw gains ranging from 1-2%.
