The Indian stock market performed a lacklustre trading on Friday. The fears of global recession and slowdown in the US and Chinese economy weighed on investors’ sentiments. Now the investors eye on US employment data which will be a base to determine interest rate cut by the US Fed.
The National Stock Exchange (NSE) Nifty 50 index 1.17 per cent lower at 24,852, while the S&P Bombay Stock Exchange (BSE) Sensex also settled 1,017 points or 1.34 per cent lower at 81,183 levels on the closing bell.
Nifty Moves
In the Nifty 50 index, merely 6 stocks advanced in the positive territory, and 33 stocks ended in the red territory, while Hindustan Unilever ended almost flat.
Among the winners Asian Paints and Bajaj Finance surged 1 per cent to top the index followed by decent gains in JSW Steel, Divis Lab and LTI Mindtree.
Among the laggards, SBI Bank plunged more than 4 per cent on global brokerage, Goldman Sachs’ bearish call. BPCL, NTPC and ICICI Bank lost more than 2 per cent, while HCL Tech, Reliance Industries and ITC also dipped nearly 2 per cent.
Analyst Note
“The domestic market was in panic today due to the Sebi’s deadline over FIIs disclosure norm, however this is not expected to impact India’s lucrativeness to FIIs in the long-term. Coupled with lack of new market catalysts and elevated valuations, a muted trend is expected to continue in the short-term,” said Vinod Nair, Head of Research, Geojit Financial Services.
Global markets are also adopting a cautious stance ahead of the release of the US non-farm payroll data. Additionally, the continuous decline in oil prices to a 14-month low and weak job openings data are heightening fears of a slowdown in the US in the near term, he added.
Sectoral Movement
In terms of sectoral performance, Nifty Bank ended 1.74 per cent lower and Financial Services moved 1.38 per cent lower, while PSU Banks ended with 3.57 per cent loss.
Auto led with more than 1 per cent loss followed by nearly 1 per cent loss in IT and Realty. FMCG fell 0.82 per cent, while Pharma and Metal lost 0.49 per cent and 0.56 per cent respectively.
The more domestically focussed indices, Mid-cap shredded 1.59 per cent, whereas Small-cap dipped 1.25 per cent.
