Sensex, Nifty50 log declines to close the week in red – IT, PSU banks and energy stocks drag
- India’s benchmark indices
Sensexand Nifty50logged declines on Friday to end the week in red.
- Dragging the indices down were IT, PSU banks and energy stocks.
- Overall, the list of top five losers on the Nifty50 index were all IT stocks, led by HCL Tech which declined over 6.5% on weak growth outlook.
AdvertisementIndia’s benchmark indices Sensex and Nifty50 logged a decline to end the week in red after selling pressure in IT, energy and PSU bank stocks. The 30-share BSE Sensex opened strong but came under severe selling pressure to close 389.01 points or 0.62% lower at 62,181.67. Similarly, the broader NSE
On a weekly basis, the Sensex lost 687 points or 1.09%, while the Nifty shed 200 points or 1.06%.
Sector-wise, BSE IT, metal and teck lost as much as 2.98% on Friday, while healthcare and bankex logged gains.
"Markets seems to be consolidating for last few sessions as participants are lightning their position ahead of crucial US Fed meeting next week. US PPI data to be released later on Friday as well as US CPI data on 13th December would be keenly watched as they would influence the Fed's interest rate decision.
HCL Tech was the top loser in the Sensex pack, skidding 6.72%, followed by Tech Mahindra, Infosys, Wipro,
On the other hand, Nestle India, Titan, Sun Pharma, Dr Reddy's, IndusInd Bank and ITC were among the gainers, advancing up to 2.24%.
"Today's downfall in the domestic market was sparked by IT stocks extending their losses after warning of a potential slowdown in business on global recession fears. This was further aggravated by banks losing their grip as PSBs suffered heavy sell-offs,” said Vinod Nair, Head of Research at Geojit Financial Services.
Weakness in tech stocks could continue, say analysts
This year has been bad for India’s IT companies, with their shares losing between 13.8-45.2% of their value till date. Yet, the future outlook remains bleak, according to analysts.
"Further, FIIs have remained net sellers (₹5,500 crore) in December so far (baring one positive day) and added to the overall pressure in the market. We expect weakness in tech stocks to continue on account of weak growth outlook. FMCG stocks are expected to do well on the back of fall in commodity prices and improving demand," said Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services.
AdvertisementFollowing a rally in the US market, bourses in Tokyo, Hong Kong, Shanghai and Seoul settled in the green. Equities in Europe were also trading with mild gains in mid-session deals.
Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Thursday as they offloaded shares worth ₹1,132 crore, according to exchange data.
Meanwhile, international oil benchmark Brent crude rose 0.05% to $76.19 per barrel.
The rupee appreciated by 10 paise to close at 82.28 (provisional) against the US dollar on Friday, tracking the weakening of the American currency in the overseas market.
Flows in the mutual fund industry through systematic investment plans or SIPs route rose to an all-time high of ₹13,306 crore in November, reflecting the growing maturity and confidence of investors.
AdvertisementHowever, inflow in equity mutual fund schemes plunged 76% to ₹2,258 crore in November from ₹9,390 crore in the preceding month, data released by Association of Mutual Funds in India (AMFI) showed on Friday.
(With inputs from PTI)
Two Adani Group companies rule as the top all-round wealth creators – here are a few other unexpected entries
Festive baton shifts to Great Indian Wedding Season, November registers best-ever auto sales, except March 2020: FADA
AdvertisementBharatPe files arbitration to claw back co-founder Ashneer Grover's unvested 1.4% shares
Popular on BI
- A laid-off Microsoft software engineer on an H1-B visa said she wonders 'where will I be living' with just 60 days to find a new job
- Mark Zuckerberg just ushered in a new era of tech, where profitability and efficiency trump perks and culture
- A Google engineer found out she had been laid off while she was on vacation when her boss sent her a LinkedIn message
- Poco X5 Pro Review - Solid performance, boring design
- PM launches 20% ethanol blended petrol in 11 states/UTs
- ITC stock scales 52-week high as brokerages hike target price
- Last mile deliveries, food aggregators to drive E2W growth says Redseer
- Poco’s mid-range smartphone X5 Pro 5G launched in India starting at ₹22,999