Equities crash as bond yields surge, private banks hit badly

Domestic equity markets continued to plunge in the afternoon session on Friday after opening in the red and came ahead of the December-quarter gross domestic product (GDP) data. While the 30-share BSE Sensex was down 1,631 points to trade at 49,407, the broader Nifty slipped nearly 500 points to 14,599. Selling was across the board with financial stocks falling the most. Housing Development Finance Corp and HDFC Bank were the top two drags on the Nifty. Among stocks, ICICI Bank slipped by 4.9% to ₹597.10 per share while HDFC Bank was lower by 4.7% lower. The Axis Bank and IndusInd Bank were down by 4.4% each and Kotak Mahindra Bank by 4%.

"There is nervousness due to rising yields. The overnight jump is a fresh wound and we are seeing a knee-jerk reaction," Rusmik Oza, head of fundamental research at Kotak Securities, told news agency Reuters. According to a Reuters poll, India's economy is likely to have returned to growth in the December quarter after contracting 7.5% in the July-September period.