Global cues, profit booking subdue equity indices; banking stocks sink

Last Updated: Sat, Aug 11, 2018 11:54 hrs
Sensex (AP Photo)

Mumbai: Geo-political concerns over global protectionist measures

along with profit booking subdued the key indices of the Indian equity market on Friday.

According to analyst, other key factors such as broadly negative global markets and heavy selling pressure in banking sector stocks pulled both the major equity indices lower.

Index-wise, the Nifty50 of National Stock Exchange (NSE) closed at 11,429.50, down 41.20 or 0.36 per cent from its previous close.

Similarly, the S&P BSE Sensex ended lower from its previous close. It closed at 37,869.23 points, down 155.14 or 0.41 per cent from its previous close.

The barometer index touched a high of 38,051.45 points and a low of 37,815.75 points during the day's trade.

"Markets corrected on Friday as selling was seen through the day. The weakness came on the back of a fall in index pivotals like Reliance, SBI and ICICI Bank," HDFC Securities' Retail Research Head Deepak Jasani, told IANS.

"Major Asian markets have closed on a negative note, barring the Shanghai and Jakarta indices. European indices like FTSE 100, DAX and CAC 40 are trading in the red," Jasani said.

"Technically, while the Nifty has corrected from life highs, the underlying trend of the Nifty remains firmly up."

Geojit Financial Services' Head of Research Vinod Nair said: "Bulls are taking a breather after consecutive days of rally as investors used this opportunity to book their profits due to weak global cues."

"PSU bank sunk on concerns of increasing provisions."

On the currency front, the rupee weakened by 15 paise to 68.83 against the US dollar from its previous close of 68.68.

Investment-wise, provisional data with exchanges showed that foreign institutional investors sold scrip worth Rs 510.66 crore, while the domestic institutional investors bought stocks worth Rs 457.83 crore.

Sector-wise, the S&P BSE consumer durable index rose 171.58 points, the IT index was augmented by 72.65 points and the auto index ended higher by 61.99 points.

In contrast, the S&P metal index declined by 266.52 points, the S&P BSE banking index receded by 255.29 points, followed by the capital goods index, which was down 216.56 points.

The major gainers on the Sensex were Hero MotoCorp up 1.41 per cent at Rs 3,321.40; Mahindra and Mahindra up 1.26 per cent at Rs 945; TCS, up 0.98 per cent at Rs 1,993.85; ITC, up 0.94 per cent at Rs 304.70; Kotak Mahindra bank, up 0.71 per cent at Rs 1,286.80.

The major losers were State Bank of India, down 3.79 per cent at Rs 304.45; Sun Pharma, down 3 per cent at Rs 553.60; Vedanta, down 2.97 per cent at Rs 223.65; Tata Motors, down 2.83 per cent at Rs 250.25; and Tata Motors (DVR), down 2.23 per cent at Rs 140.05 per share.

On the Thursday trade session, foreign fund inflows, along with domestic political developments, lifted the Indian equity indices to their new record intra-day and closing highs.

Consequently, the Sensex closed at a new record high of 38,024.37 points, higher by 136.81 points or 0.36 per cent. It touched a record intra-day high of 38,076.23 points.

The wider NSE Nifty50 made a new closing high of 11,470.70 points, higher by 20.70 points or 0.18 per cent. It had hit a fresh intra-day record high of 11,495.20 points.