Indian markets on Friday dropped to 1-1/2 month lows with benchmark Sensex slipping 208.59 points to 28,261.08 and Nifty index falling 63.75 points to 8,570.90 due to sustained selling pressure on earnings concerns. This is the third straight day of losses for the indices, which fell for the second week on the trot.
Shares of Realty, Power, FMCG, Consumer Durable, Auto and Capital good sectors were major losers of the day. Small-cap and Mid-cap indices also dropped by 2.14% and 1.49% respectively as retail investors offloaded shares.
“…markets are…awaiting the 4Q results, which are expected to be subdued,” said Dipen Shah, Head of PCG Research, Kotak Securities.
The BSE Sensex resumed slightly lower at 28,465.44 and moved down further to 28,209.66 before ending at 1-1/2 month low at 28,261.08 — a net loss of 208.59 points or 0.73% from its last close. This was its weakest close since February 9, 2015 when it ended at 28,227.39. The Sensex has now lost 475.30 points or 1.65% in three consecutive days.
Meanwhile, the NSE 50-share Nifty dropped by 63.75 points or 0.74% to end at 8,570.90.
Jayant Manglik, President-retail distribution, Religare Securities said: “Tracking weak global cues, equity benchmarks made a sluggish start and upheld that bias till the end. Besides, depreciation in Indian rupee too weighed down sentiments but that helped IT counters to end in green while all the other sectoral indices reeled under pressure.”
Overcoming obstacles, the Mines and Minerals bill was on Friday passed by Parliament. Later, Coal Bill was passed by Rajya Sabha.
Related read: Rajya Sabha passes Mines Bill
Asian markets ended mixed even as investors booked profits after the previous day’s rally that was fuelled by the Federal Reserve’s dovish stance on interest rates. Key indices in China, Japan, Singapore and Taiwan ended 0.13% to 0.98% higher while indices in Hong Kong and South Korea fell in 0.03-0.38% range.
European markets were trading higher amid renewed hopes for progress on the Greek debt front. Key indices in the UK, France and Germany were up by 0.07% to 0.56%.
Meanwhile, Foreign Portfolio Investors (FPIs) bought shares worth a net Rs 1,428.72 crore on Thursday as per provisional data released by the stock exchanges.
Coming back to Friday’s trade, major losers in Sensex include NTPC (6.25%), BHEL (3.68%), ICICI Bank (3.36%), GAIL (3.31%), M&M (2.70%), HUL (2.64%), Tata Steel (2.205), Hero MotoCorp (1.89%) and Sun Pharma (1.79%). ITC (1.64%), Sesa Sterlite (1.62%), Cipla (1.35%), Axis Bank (1.30%), SBI (1.14%) and Tata Motors (1.03%) also slipped.
Shares of Wipro rose 2.92% and Infosys 1.30% among Sensex constituents that gained on Friday.
Among BSE sectoral indices, Realty dropped 3.74%, followed by Power 2.09%, FMCG 2.09%, Consumer Durable 1.93%, Healthcare 1.52%, Auto 1.36%, Capital Goods 1.16% and Bankex 0.89%.
The total market breadth continued to remain weak as 2,117 stocks ended in red, 752 finished in green while 106 ruled steady. The total turnover declined to Rs 3,683.76 crore from
Rs 3,835.31 crore on Thursday.
PTI