The markets have dipped as of May 6th, with the Sensex plummeting 980 points and the Nifty below 16,500.

In early trade on Friday, the Indian equity benchmark indices went into a tailspin. The Sensex fell over 980 points to fall below the 55,000-mark due to weak global markets.

The 30-share BSE benchmark fell 980.45 points to 54,721.78 today while the NSE Nifty dropped 300.15 points to 16,382.50 in comparison with yesterday’s closing of 17,682 and 15,919 respectively

Elsewhere in Asia, markets in Hong Kong, Shanghai and Korea were trading significantly lower, while Tokyo quoted marginally higher.

Stock exchanges in the US had fallen sharply in the overnight trade on Thursday.

“US markets witnessed a relief rally on Wednesday after FOMC meeting but it tumbled on Thursday due to more anxiety over rising interest rates. Asian markets are trading in the red in early Friday trade,” said Mohit Nigam, Head – PMS, Hem Securities.

On Thursday, the BSE benchmark closed just 33.20 points or 0.06 per cent higher at 55,702.23. Similarly, the NSE Nifty inched up 5.05 points or 0.03 per cent to 16,682.65.

International oil benchmark Brent crude jumped 0.45 per cent to USD 111.40 per barrel.
Foreign institutional investors again offloaded shares worth Rs 2,074.74 crore on Thursday, according to stock exchange data.

“While intra-day volatility will continue, markets will keep an eye on Reliance Industries’ earnings scheduled to be announced later today. With most of the negative factors in play, FII selling has once again picked up, as overseas investors sold shares worth Rs 2,074.74 crore on Thursday,” said Prashanth Tapse, Vice President (Research), Mehta Equities Ltd.

Meanwhile, the rupee depreciated 38 paise to 76.73 against the US dollar in the opening trade on Friday, weighed down by unabated foreign fund outflows and firm crude oil prices.

At the interbank foreign exchange, the rupee opened at 76.61 against the American dollar, then lost ground to quote at 76.73, registering a fall of 29 paise from the last close.

On Thursday, the rupee had closed at 76.35 against the US dollar.

Forex traders said the rupee had gained in the last two sessions against the US dollar after a surprise rate hike by the Reserve Bank of India (RBI) and as US Fed Chairman Jerome Powell pushed back against a steeper 75 basis points rate hike in the coming months.