Mumbai, Dec 2, 2016: Negative global indices, along with caution ahead of US non-farm payrolls data and profit booking, suppressed the Indian equities markets on Friday.
Besides, the political logjam in Parliament over the government’s demonetisation decision continued to erode investors’ sentiments.
In addition, caution prevailed globally ahead of Italy’s constitutional referendum on December 4 and heightened chances of a US rate hike.
The key Indian indices closed the day’s trade in the red for the second consecutive session — with losses of more than one per cent each.
The wider 51-scrip Nifty of the National Stock Exchange (NSE) slipped by 106.10 points or 1.30 per cent to 8,086.80 points.
The barometer 30-scrip sensitive index (Sensex) of the BSE, which opened at 26,437.37 points, closed at 26,230.66 points — down 329.26 points or 1.24 per cent from the previous close at 26,559.92 points.
The Sensex touched a high of 26,463.06 points and a low of 26,182.93 points during the intra-day trade.
The BSE market breadth was skewed in favour of the bears — with 1,794 declines and 871 advances.
On Thursday, the equity markets were subdued by profit booking and lower European indices.
The barometer index was down by 92.89 points or 0.35 per cent, while the NSE Nifty edged lower by 31.60 points or 0.38 per cent.
“Weak global cues due to political jitters in Europe ahead of events on Sunday (December 4) seem to have contributed to today’s fall, as almost all the major Asian markets ended in the red,” Deepak Jasani, head of Retail Research, HDFC Securities, told IANS.
Italy’s constitutional referendum on Sunday, December 4, which will decide if the country will remain in the Eurozone, spooked the confidence of the investors.
“Continuous selling pressure was seen in the Nifty in today’s session after a gap down opening in morning,” SMC Global Securities said in a commentary to IANS.
“Profit booking continues in the domestic markets tracking weak global markets cues.”
Dhruv Desai, Director and Chief Operating Officer of Tradebulls, said: “IT stocks failed to sustain at higher levels and witnessed selling pressure in the second half of the session, while banking, pharma, auto, oil-gas, aviation and textile stocks traded with bearish sentiments.”
“Media-entertainment, FMCG, cement and power sector stocks also traded with bearish sentiments due to selling pressure from traders,” Desai said.
“Bearish price movement of USD/INR futures prices in second half of the session supported Nifty to witness some recovery from lower levels.”
The Indian rupee appreciated by 15 paise to close at 68.20 against a US dollar from its previous close of 68.35 to a greenback.
In terms of investments, provisional data with exchanges showed that the foreign institutional investors (FIIs) sold stocks worth Rs 190.52 crore, while the domestic institutional investors (DIIs) divested scrip worth Rs 418.58 crore.
Sector-wise, all the 19 sub-indices of the BSE closed in the red.
The S&P BSE automobile index plunged by 248.29 points, followed by the consumer durables index, which receded by 260.09 points, and the capital goods index, which declined by 212.10 points.
Major Sensex gainers on Friday were: Bajaj Auto, up 0.64 per cent at Rs 2,702.45; Cipla, up 0.57 per cent at Rs 571.40; Hero MotoCorp, up 0.17 per cent at Rs 3,183.70; and ICICI Bank, up 0.12 per cent at Rs 259.65.
Major Sensex losers were: Asian Paints, down 3.57 per cent at Rs 905.55; Maruti Suzuki, down 3.44 per cent at Rs 5,068.45; Tata Motors, down 3.37 per cent at Rs 433.05; Adani Ports, down 3.13 per cent at Rs 266.40; and HDFC, down 2.35 per cent at Rs 1,240.05.