The benchmark equity indices on the BSE and National Stock Exchange ended nearly 0.5 per cent lower on Friday largely in-line with their global peers. The fall was led by declines in banking and financial stocks.
The S&P BSE Sensex slipped 143.36 points (0.39 per cent) to end at 36,594.33, while the Nifty 50 settled at 10,768.05, down 45.40 points (0.42 per cent).
Reliance Industries (RIL), Sun Pharmaceutical Industries, Hindustan Unilever (HUL), Tata Consultancy Services (TCS) and Power Grid were the top gainers on the BSE benchmark, while Axis Bank, IndusInd Bank, Titan Company, Housing Development Finance Corporation (HDFC), ICICI Bank and Oil and Natural Gas Corporation (ONGC) were the top laggards. (see heatmap)
Among sectoral indices, the Nifty Bank index crashed 2.22 per cent weighed by Punjab National Bank (PNB), RBL Bank and IDFC First Bank. Likewise, the Nifty Financial Services too skid1.89 per cent dragged by ICICI Prudential Life Insurance Company, Axis Bank and Shriram Transport Finance Company.
Here’s how the sectoral indices performed:
In the broader market, the S&P BSE MidCap index ended at 13,396.83, down 96.64 points (0.72 per cent), while the S&P BSE SmallCap closed at 12,803.78, down 44.46 points (0.35 per cent).
“On a weekly basis, the benchmark indices gained around 1.5 per cent. The weekly gains were mainly driven by liquidity and the hope that the virus would be contained soon and businesses back to normal. However, the outlook for the market is volatile as the earnings announcements have begun after a washout quarter for most industries. This uncertainty combined with profit booking happening after the recent rally, means that the volatility is expected to continue in the markets and investors would do well to be cautious and stock specific in this market,” Vinod Nair, Head of Research at Geojit Financial Services, said in a statement after the markets ended Friday.
The Indian rupee weakened by 21 paise to close at 75.20 against the US dollar on Friday, tracking lower equities as investors seemed moving away from riskier assets amid worries over mounting COVID-19 cases.
Further, the stronger US dollar against key rival currencies also put pressure on the domestic unit.
The dollar index, which measures the American currency’s strength against a basket of major currencies, was at 96.7910, up 0.09 per cent.
At the interbank foreign exchange market, the rupee opened weaker at 75.16 a dollar against the previous day’s close of 74.99.
During the session, it swung between a high of 75.12 and low of 75.33 before settling at 75.20, showing a loss of 21 paise.
On a weekly basis, the rupee logged a loss of 54 paise.
World stocks and oil prices were faltering on Friday as record-setting new coronavirus cases in several US states led to worries that more lockdowns may be necessary, making a quick economic recovery unlikely.
The upcoming second-quarter earnings season, expected to be the worst for Europe and the United States since the 2008/09 financial crisis, added to the woes, pushing investors to chase safe-haven assets, such as US Treasuries and the yen.
European stocks declined 0.3 per cent, taking cues from Asia, where China ended its rally. Shares in China fell 1.8 per cent from a five-year high, as state media discouraged retail investors from chasing the market higher.
MSCI’s broadest index of Asia-Pacific shares outside Japan fell 1.3 per cent. Australian stocks declined by 0.6 per cent as an extension of loan-payment deferrals hit the banking sector. Japanese stocks were down by 1.1 per cent.
The e-mini futures for the S&P 500 erased early gains to trade down 0.6 per cent.
– rupee input from PTI, global market input from Reuters
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