Mumbai (Maharashtra) [India], September 23 (ANI): The Indian stock market's key indices, Sensex and Nifty, slumped by nearly two per cent on Friday leading to an erosion of over Rs 4 lakh crore of investors' wealth amid weak global cues after the US Federal Reserve signalled an aggressive increase in interest rate to control inflation.

The 30 stock SP BSE Sensex slumped 1020.80 points or 1.73 per cent to 58,098.92 points against its previous day's close at 59,119.72 points.

Extending the losses to the fourth consecutive day the Sensex started the day in the red at 59,005.18 points and slumped to a low of 57,981.95 points in the intra-day.

This is the fourth consecutive day of losses in the markets. The Sensex had dipped by 337.06 points or 0.57 per cent on Thursday.

The broader Nifty 50 of the National Stock Exchange slumped 302.45 points or 1.72 per cent to 17,327.35 points against its previous day's close at 17,629.80 points.

The Nifty had lost 88.55 points or 0.5 per cent on Thursday.

The selling pressure in the market has led to an erosion of over Rs 4 lakh crore in investors' wealth.

The stock markets have slumped across the world after the US Federal Reserve on 21 September announced 75 basis points increase in policy interest rate.

Banking stocks witnessed heavy selling pressure. State Bank of India tumbled 2.99 per cent to Rs 550.45. HDFC Bank slumped 2.64 per cent to Rs 1446.50. All major banks including Axis Bank, IndusInd Bank, Kotak Bank and ICICI Bank closed with huge losses.

Power Grid Corporation crashed 7.93 per cent to Rs 202.60. MahindraMahindra slumped 3 per cent to Rs 1271.30.

The index heavyweight Reliance Industries Limited slumped 1.87 per cent to Rs 2439.35.

Bajaj Finserv, Bajaj Finance, NTPC, HDFC, Titan, Bharti Airtel and UltraTech Cement were among the major Sensex losers.

Only three out of the 30 scrips that are part of the benchmark Sensex closed in the positive. Sun Pharma jumped 1.53 per cent to Rs 920.80. ITC climbed 0.33 per cent to Rs 346.25.

The share price of Tata Steel rallied while subsidiaries slumped by upto 9 per cent on Friday after the company's board approved the amalgamation of seven group companies.

On the BSE, Tata Steel closed 0.58 per cent higher at Rs 104.25. The scrip surged to a high of Rs 107.90 in the intra-day.

Out of the seven Tata Group companies that would get merged with Tata Steel, four are listed. All these four companies were trading with heavy losses.

Tata Steel Long Products Limited slumped 8.73 per cent to Rs 683.50. The scrip hit a low of Rs 679.65 in the intra-day.

MahindraMahindra Financial Services Limited crashed by more than 14 per cent a day after the Reserve Bank of India (RBI) barred it from using third-party recovery agents.

On the BSE, the share of MahindraMahindra Financial Services Limited was trading 11.42 per cent down at Rs 198.20. The scrip crashed to a low of Rs 192.05 in the intra-day against its previous day's close at Rs 223.75.

The Reserve Bank of India on Thursday announced that it has directed MahindraMahindra Financial Services Ltd (MMFSL) to "immediately cease carrying out any recovery or repossession activity through outsourcing arrangements, till further orders."However, the said NBFC may continue to carry out recovery or repossession activities, through its own employees, the RBI said. (ANI)