Sensex, Nifty fall more than 1%; post biggest weekly drop since August

As global rout in equities battered Asian markets, while lingering concerns over inflation at home also weighed.

Indian shares fell more than 1 percent on Friday, posting their biggest weekly drop since August, as a global rout in equities battered Asian markets, while lingering concerns over inflation at home also weighed.

The benchmark BSE Sensex fell 407.40 points or 1.18 percent to 34,005.76, falling 3 percent on the week. While, the broader NSE Nifty dropped 121.90 points or 1.15 percent to 10,454.95, losing 2.8 percent for the week.

Asian stocks tumbled to two-month lows after US shares plummeted again in the face of rapidly rising bond yields.

Global cues have weighed on Indian stock markets with major indexes on track for a second straight weekly fall after embarking on a record-hitting spree in January.

US markets remained the epicentre of the global sell-off, with the Dow plunging 4.1% and the S&P 500 sinking 3.7% overnight.

Higher yields are seen hurting equities as they increase borrowing costs for companies and reduce their risk appetite. They also present a fresh alternative to investors, who may choose to allocate some of their money from equities to bonds.

(With agency inputs)