Benchmark indices ended lower for the second consecutive session on Friday as more central banks tightened monetary policies and signalled a hawkish stance on inflation.

While the 30-share Sensex took a knock of 461.22 points, or 0.75 per cent, to settle at 61337.81 after tumbling more than 506 points to the day’s low of 61292.53, the broader NSE Nifty declined 145.90 points, or 0.79 per cent, to end at 18269.

This came as investor sentiment was soured on fears that interest rate hikes by various central banks could see some of the global economies going into a recession in 2023.

On Thursday, the European Central Bank (ECB), Swiss National Bank and Bank of England (BoE) increased policy rates by 50 basis points to control inflation. But their language was hawkish, indicating more interest rate increases next calendar year. Global markets were particularly hit by the remarks of Christine Lagarde that “significant’’ rate increases are yet to come. Their action came only a day after the Fed also indicated that it was not done with a hike in borrowing costs. Many analysts now expect a reduction only in 2024.

Back home, equities have been hit by valuation concerns and subdued interest by foreign portfolio investors (FPIs). Provisional data showed that they sold stocks worth Rs 1,975 crore during Friday’s trade. So far this month, they have purchased shares to the tune of Rs 10,565 crore compared with over Rs 36,200 crore in November.

Dr Reddy’s was the top laggard in the Sensex pack, shedding 3.62 per cent. It was followed by M&M, Asian Paints, TCS, SBI, Titan, PowerGrid and Wipro which fell up to 2.75 per cent. Only four counters — HDFC Bank, HUL, Nestle India and Tata Steel — gained as they rose up to 0.49 per cent.

On a weekly basis, the Sensex declined 843.86 points, or 1.36 per cent, while the Nifty shed 227.60 points, or 1.23 per cent.

“Markets are likely to remain in consolidative range due to lack of triggers in the near term. Also, lower participation from institutional investors due to upcoming year-end holidays would keep the markets lacklustre,” said Siddhartha Khemka, head of retail research, Motilal Oswal Financial Services Ltd.

In the broader market, the BSE midcap gauge declined 1.44 per cent and smallcap index dipped 0.96 per cent in Friday’s session.

In the forex markets, the rupee also turned weak and ended at 82.87 against the US dollar compared with the previous close of 82.76.