FX.co ★ Sensex, Nifty Snap Five-day Winning Streak

Indian stocks took a nosedive on Friday due to concerns about slowing growth and enduring inflation in the United States, the world's leading economy.

Yields for the 10-year U.S Treasury bond escalated to an unprecedented level since last November, and the 2-year yield hit 5 percent after the release of data indicating a deceleration in GDP growth, but rampant inflation. This ignited fears of stagflation and led investors to delay their expectations for rate cuts until December.

Investors also cautiously responded to the mixed bag of earnings reported by major U.S. tech companies and were awaiting the release of the Federal Reserve's preferred inflation index for additional guidance.

Taking cues from an uneven global market performance and the robust earnings of Microsoft Corp and Alphabet Inc., the S&P BSE Sensex, India's benchmark index, closed the trading day 609.28 points lower, a 0.82% drop, settling at 73,730.16.

The broader NSE Nifty index ended 150.40 points in the red, a 0.67% decline, at 22,419.95, ending its five-day streak of gains.

The financial sector suffered, with Bajaj Finance and Bajaj FinServ shares plunging by 7.7% and 3.7% respectively due to worries about profit growth. Shares of SBI Life, Nestle India, and IndusInd Bank all dipped by 2-3%.

However, there were notable exceptions in the tech sector. IT company Tech Mahindra saw its shares balloon by 7.6% following the announcement of an ambitious turnaround plan scheduled for completion by FY27. Divis Laboratories also saw its shares rise by nearly 5%, marking its fifth consecutive day of gains.

LTIMindTree shares rallied by 3.4%. Despite announcing a sequential profit decline in Q4, the IT firm expressed confidence in its recovery by Q1 FY25, with an aim for broad-based growth.

Meanwhile, shares of Bajaj Auto ascended by 2.5% after the company announced an expansion of its export operations.