Snapping an eight-day gaining streak, the BSE Sensex on Friday declined 415.69 points, or 0.66 per cent, to close at 62,868.50, due to profit-booking and negative cues from global markets. The NSE Nifty also fell 116.4 per cent to end the day at 18,696.10. In the forex market, the rupee also weakened by 9 paise to close at 81.26 against the US dollar.
During the session, the Sensex also declined 305.61 points to 62,978.58 in the early morning trade, while the Nifty was also down by 79.65 points to 18,732.85. The rupee, however, was up by 18 paise to 81.08 against the US dollar in the early trade.
In the eight-day gaining streak till Thursday, the BSE benchmark jumped 2,139.35 points or 3.49 per cent.
During the day, after opening at 62,978.58, the Sensex touched the day’s high of 63,148.59 in the early morning and then started declining before hitting the session’s lowest of 62,679.63 at around 12.15 pm. After this, the equity benchmark remained in the red territory till the end of the day, except for a brief 10 minutes of positive market before finally closing down at 62,868.50.
Among the Sensex constituents, 22 out of 30 shares ended the day in the red falling up to 2.08 per cent. Mahindra and Mahindra, Hindustan Unilever, Maruti, Nestle India and HDFC were the lop losers on Friday. However, Tata Steel, Dr Reddy’s, Tech Mahindra, IndusInd Bank and Bajaj Finserv were gainers.
Vinod Nair, head (research) at Geojit Financial Services, said, “The rally in the domestic market was halted by negative cues from global counterparts and broad-based profit booking in large caps. The correction in the market was led by auto stocks as the sales data came in lower than expected due to weaker exports and sequential de-stocking.”
He added that declining manufacturing activity in the US is proof that the central bank’s policy tightening has started to show results, which in turn will encourage the US Fed to keep rate hikes at bay.
S Ranganathan, head (research) at LKP securities, said, “With IT stocks supporting the Bulls well this week, we witnessed price action on Friday across select themes in the small and midcap space. On a day when auto stocks dragged indices down post the monthly numbers, the street-focused attention in the broader markets to segments like tyres, pipes & sugar buoyed by positive newsflow as many stocks were keenly sought after in these pockets.”
The Rupee Falls 9 Paise to 81.26
Following the domestic equity market, the rupee on Friday also weakened by 9 paise to close at 81.26 to a US dollar. However, in the early morning trade, it was up by 18 paise to 81.08 against the US dollar.
At the interbank foreign exchange market, the local unit opened at 81.11, but pared the gains and ended at 81.35, down 9 paise over its previous close. During the day, the local unit witnessed an intraday high of 81.08 and a low of 81.35. On Thursday, the rupee appreciated by 4 paise to close at 81.26 against the US dollar.
Anil Kumar Bhansali, head (treasury) at Finrex Treasury Advisors, said, “The rupee moved in a small range of 81.08 to 81.25 as oil companies were the buyers and all others, including FPIs, sellers, as the dollar continues to languish lower crossing 104.65, its first major support. Euro and GBP continued to make merry on the falling dollar and were up about 0.15 per cent. The non-farm payroll data from the US was due this evening and is expected to come at 200,000 as against 261,000 last month, indicating a softening economy.”
He added that most Asian currencies were up against the dollar with CNH on the cusp of breaking 7.00, KRW above 1300 and IDR gaining further above 15,400. Brent oil was a tad bit lower at $86.63.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.18 per cent to 104.53. Global oil benchmark Brent crude futures rose 0.17 per cent to USD 87.03 per barrel. Foreign Portfolio Investors (FPIs) were net sellers in the capital markets on Thursday as they offloaded shares worth Rs 1,565.93 crore, according to exchange data.
“Exporters need to keep selling the good upticks while importers may buy the downticks towards 81 and 80.80 for hedging in the near term. Range for the next week is expected at 80.50 to 81.50, with risks to the downside for US dollar,” Bhansali.
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