Market declines due to foreign investor selling, weak quarter earnings
At the close, the Sensex fell by 1.2 per cent or 942 points to 78782.24, while the Nifty dropped 1.27 per cent or 309 points to 23995.35.
The Sensex and the Nifty on Friday snapped out of their 6-day-long losing streak, to offer some respite on the last day of the week.
Sensex closed 51 points higher at 37,882.79 from its Thursday’s close of 37,830.98, while the broader Nifty settled 32.15 points higher at 11,284.30.
The gains could have been higher but for the IT companies. The Nifty IT index was the only sectoral index closing in the red. NIIT Technologies Limited, Tata Elxsi Limited and Tech Mahindra Limited contributed most to its fall.
Advertisement
“The investor sentiment dampened after disappointing quarterly corporate results, the IMF lowering India’s growth outlook, and no rollback of surcharge for foreign portfolio investments (FPIs) registered as trusts or association of persons (AoPs),” said Sanjeev Zarbade, VP PCG Research, Kotak Securities.
“The FPIs sold equities worth US$1.2 billion over the past five trading sessions while domestic institutional investors (DIIs) invested US$1.1 billion,” Zarbade added.
Vedanta was the top loser among the Nifty50 stocks. It closed 4.29 per cent lower ahead of its quarterly results.
Yes Bank on Friday advanced as much as 10.55 per cent on the BSE, before settling 9.64 per cent higher at Rs 96.10 apiece over reports of capital infusion by certain institutional investors.
The country’s largest commercial vehicle (CV) maker Tata Motors’ shares closed nearly 2 per cent higher at Rs 147.20 apiece despite reporting double the losses in the June quarter than what it incurred in the same quarter last year.
However, it did succumb to heavy selling pressure on Thursday, ahead of its result announcement.
Advertisement
