BENGALURU: India’s blue-chip indexes dropped 1% each on Friday, weighed down by financial and information technology stocks, as hot US inflation data earlier this week dimmed hopes of early interest rate cuts by the Federal Reserve.

The drop on Friday erased weekly gains for the NSE Nifty 50 and S&P BSE Sensex indexes.

Hotter-than-expected US inflation data on Wednesday threw cold water on rate-cut hopes, triggering a drop in Indian equities on Friday.

“The inflation data has definitely spurred worries over the timing of the Fed rate cut in 2024,” said Narendra Solanki, head of fundamental research of investment services at Anand Rathi Shares and Stock Brokers.