The Sensex and Nifty market indices fell by 2 percent and the worst week since November awaits them. Both stock indices are in the red as investors fear that a rapid rise in interest rates due to a slowdown in inflation could slow global economic growth.

The NSE Nifty 50 index fell 1.90 percent or 317.20 points to 16,365.45, with all sectors trading at negative levels. The S&P BSE Sensex fell 1.83 percent, or 1,020.78 points, to 54,681.45.

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WHY IS SHARE MARKET DOWN?

Benchmark indexes are on the way to the fourth weekly decline in a row, losing more than 6 percent, burdened by a surprise rise in interest rates in the Reserve Bank of India, estimating foreign fund flows and corporate earnings results, according to a news report.

So far this week, foreign investors have net sold Indian equities worth $635 million, compared with $881 million offloaded in the same period last week, according to Refinitiv data.

Foreign investors have so far recorded net sales of Indian stocks worth $ 635 million this week, compared to $ 881 million in the same period last week.

"Domestic markets are lower on the global headlines, which are focusing more on high inflation as well as the Fed rate increase two days back," Prashanth Tapse, vice president of research at Mehta Equities, was quoted as saying by news channel.

The Fed raised interest rates by half a percentage point on Wednesday, as expected, and President Jerome Powell clearly ordered a 75-basis point increase at the next political meeting.

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KEY SHARES

On the Nifty index, metal, IT, bank, auto and finance were among the top losers, declining between 2 per cent and 3 per cent.

Reliance Industries, India's most valuable company, fell 0.8 percent. The oil-to-retail conglomerate is expected to announce its quarterly results later in the day.

Cigarette-to-hotel conglomerate ITC Ltd was the highest percentage to receive Nifty 50, more than 1 percent.

Asian stocks have responded to fears that the US Federal Reserve and other major central banks should raise interest rates more aggressively to beat full inflation.

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