The BSE Sensex made an eight-day gain streak on Friday, falling 415.69 points, or 0.66 percent, on Friday to close at 62,868.50, following profit postings and negative signals from global markets. The NSE Nifty also fell 116.4 percent 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 fell 305.61 points to 62,978.58 in early morning trading, while the Nifty also fell 79.65 points to 18,732.85. However, the rupee rose 18 paise to 81.08 against the US dollar in early trading.
In the eight-day winning streak through Thursday, the BSE benchmark rose 2,139.35 points, or 3.49 percent.
During the day, after opening at 62,978.58, the Sensex reached an early morning high of 63,148.59 and then began to fall before reaching a session low of 62,679.63 around 12:15 p.m. After this, the equity benchmark remained in the red zone through the end of the day, barring a brief 10-minute positive market before finally closing at 62,868.50.
Of Sensex voters, 22 out of 30 stocks ended the day in the red, falling to 2.08 percent. Mahindra and Mahindra, Hindustan Unilever, Maruti, Nestle India and HDFC were the losers on Friday. Tata Steel Dr. However, Reddy’s, Tech Mahindra, IndusInd Bank and Bajaj Finserv were winners.
Vinod Nair, head (research) at Geojit Financial Services, said: “The domestic market rally was halted by negative signals from global counterparts and large-scale capital bookings. The correction in the market was led automotive stocks, as sales came in lower than expected due to weaker exports and sequential de-stocking.”
He added that declining manufacturing activity in the US is evidence that the central bank’s policy tightening is beginning to bear fruit, 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 in selected themes in the small and mid-cap space. On a day when auto stocks dragged indices down after the monthly numbers, street-focused attention in the broader markets for segments like tires, pipes and sugar was supported by positive news as many stocks in these pockets were highly sought after.
The Rupee drops 9 Paise to 81.26
Following the domestic stock market, the rupee also weakened by 9 paise on Friday to close at 81.26 to the US dollar. However, in early morning trading it was up 18 paise to 81.08 against the US dollar.
Anil Kumar Bhansali, head (treasury) at Finrex Treasury Advisors, said: “The rupee moved in a narrow range from 81.08 to 81.25 as oil companies were the buyers and everyone else including FPIs were sellers while the dollar continues to languish at the lower crossings. 104.65, the first major support. Euro and GBP remained buoyant on the declining dollar, rising about 0.15 percent. Nonfarm wage data from the US is due tonight and is expected to come in at 200,000 up from 261,000 last month, pointing to a weakening economy.”
He added that most Asian currencies outperformed the dollar, with the CNH on the verge of breaking 7.00, the KRW above 1300 and the IDR rising beyond 15,400. Brent oil was slightly lower at $86.63.
“Exporters should continue to sell the good gains while importers can buy the declines towards 81 and 80.80 to hedge in the near term. Next week range is expected at 80.50 to 81.50, with downside risks to the US dollar,” Bhansali.
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