Mumbai: Equity benchmark indices Sensex and Nifty ended lower on Friday, dragged by selling in banking, utility and financial stocks as investors turned cautious ahead of the release of industrial production data.
Unabated foreign fund outflows and a depreciating rupee amid geopolitical tensions also hit investors’ sentiment, traders said.
However, intense buying in metal stocks amid reports that China will pump more capital in fresh fiscal stimulus to boost its economy restricted the losses, they added.
In a volatile trade, the 30-share BSE Sensex fell 230.05 points or 0.28 per cent to close at 81,381.36. During the day, it declined 307.26 points or 0.37 per cent to a low of 81,304.15.
A total of 2,143 stocks advanced, while 1,751 declined and 117 remained unchanged on the BSE.
The NSE Nifty slipped 34.20 points or 0.14 per cent to 24,964.25. It hit an intraday low of 24,920.05.
“The market traded sideways due to a lack of fresh triggers for decisive momentum. The uptick in the US 10-year yield due to the unexpected rise in US core inflation and caution ahead of the result season added layers of sentiment in the market.
“The ongoing geopolitical challenges influenced FIIs to shift their focus towards the affordable markets, which is impacting the domestic market liquidity,” Vinod Nair, Head of Research, Geojit Financial Services.
From the Sensex pack, Tata Consultancy Services, Mahindra & Mahindra, ICICI Bank, Maruti Suzuki India, Power Grid, Axis Bank and Adani Ports & Special Economic Zones were among the laggards.
On the other hand, HCL Technologies, Tech Mahindra, JSW Steel, Hindustan Unilever, Infosys and Titan were among the gainers.
“Investors traded with caution on the last trading day of the week on worries any escalation in the Iran-Israel conflict over the weekend could fuel uncertainty going into the next week.
“Optimism could return once the earnings season picks up momentum and results are in line with expectations, else the mood could remain cautious with a negative bias in the near to medium term,” Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd, said.
Bandhan Bank shares surged over 12 per cent after the Reserve Bank of India (RBI) approved the appointment of Partha Pratim Sengupta as its MD and CEO for three years.
On the contrary, the scrip of Tata Consultancy Services fell 2 per cent after the country’s largest IT firm’s September quarter earnings failed to cheer investors.
The government is scheduled to release Index of Industrial Production (IIP) data later in the day.
In the broader market, the BSE midcap and smallcap gauge rose 0.44 per cent each.
Sector-wise, Realty slipped 0.74 per cent, Utilities (0.68 per cent), Bank (0.61 per cent), Auto (0.45 per cent), Financial Services (0.42 per cent) and Power (0.38 per cent).
On the other hand, Metal increased 1.25 per cent, healthcare (0.85 per cent), Oil & Gas (0.64 per cent), IT (0.59 per cent), Consumer Durables (0.50 per cent) and Energy (0.49 per cent).
Despite volatility in equity benchmark Sensex, the market capitalisation of BSE-listed companies rose by Rs 27,796.69 crore to Rs 4,62,27,901.66 (USD 5.50 trillion).
“European stock markets traded marginally lower Friday while Asian markets closed mixed, as investors digested a hotter-than-expected US inflation reading ahead of key US bank earnings and a highly-anticipated Chinese fiscal policy briefing,” Deepak Jasani, Head of Retail Research at HDFC Securities, said.
In Asian markets, Tokyo and Hong Kong were closed in green territory, while Shanghai and Seoul ended in the red.
European markets were trading on a mixed note in mid-session deals. US markets ended lower in overnight deals on Thursday.
Global oil benchmark Brent Crude fell 0.77 per cent to USD 78.79 a barrel.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 4,926.61 crore on Thursday, while Domestic Institutional Investors (DIIs) bought equities worth Rs 3,878.33 crore, according to exchange data.
“This week, the market exhibited a mixed trend and ended with a negative bias. The Indian market is currently in a phase of consolidation due to premium valuations and a subdued outlook for Q2 results.
“In contrast, FIIs are capitalizing on arbitrage opportunities in the Chinese markets, driven by stimulus measures and low valuations. The RBI policy was neutral, as the change in stance does not indicate the likelihood of a rate cut in the near term,” Nair said.
On Thursday, the 30-share BSE Sensex rose 144.31 points to settle at 81,611.41, while the NSE Nifty climbed 16.50 points to close at 24,998.45.
“The week concluded on an indecision note, with the index closing 50 points lower than the previous week. Market breadth today remained favourable, although sector performance displayed a mixed outcome,” Ameya Ranadive Chartered Market Technician, CFTe, Sr Technical Analyst, StoxBox, said.
