Tepid corporate earnings and lacklustre US retail sales did not help matters much. Global cues too did not paint a rosy picture.
Uncertainty over US-China trade deal further kept risk appetite at bay.
The BSE Sensex fell as much as 365 points during the day on broad-based selling across sectors, but recouped much of the losses to end 67 points lower at 35,809. This was the seventh straight day of loss for the 30-share index. The barometer ended 2.03 per cent lower for the week.
Meanwhile, its NSE counterpart Nifty ended the day at 10,724, down 22 points.
Global shares lay low amid disappointing data from the world’s two biggest economies – the US and China. Rising crude, a falling rupee and a possible escalation in tension between India and Pakistan after the latest terrorist attack hit investor sentiment hard.
Market at a glance
Among Sensex stocks, 12 settled higher and 18 in the red. Sun Pharma was the top loser with a fall of 3.94 per cent, along with Tata Steel, Vedanta, Hero MotoCorp, Bajaj Finance and SBI.
NTPC, Power Grid, ONGC, RIL and L&T looked up though, rising up to 4.13 per cent.
Shares of pharma major Dr Reddy’s Laboratories plunged as much as 29.78 per cent to Rs 1,872.95. The shares had last hit this level on October 15, 2001. However, the scrip recovered ground to end 4.17 per cent lower on the NSE.
Jefferies said the 11 observations found under Form 483 on company’s Bachupally manufacturing unit includes four repeat observations, including one repeated from 2015 and 2017. The observations are around lack of thorough investigations, written records lacking details, employees not being trained and lack of infrastructure.
Metals and healthcare were the worst hit on the BSE today, declining over 2 per cent each. On the other hand, power and utilities were the leading sectoral performers, gaining over 2 per cent each.
Midcaps and smallcaps suffered more than the Sensex. BSE Midcap ended 1.18 per cent lower while BSE Smallcap was 0.83 per cent down.
Factors that moved markets:
Rupee slide continues
Rupee continued to slide against the US dollar on Friday amid rising crude prices and fears of a possible escalation in geopolitical tensions here. Prime Minister Narendra Modi on Friday warned Pakistan of a strong response to a car bomb attack on a military convoy in Kashmir. The domestic unit declined 29 paise in intraday session to hit a low of 71.44. It had settled at 71.15 on Thursday.
Boiling oil cools
Brent crude oil prices slipped away from 2019 highs above $65 per barrel reached earlier on Friday as economic concerns countered Opec-led supply cuts and a partial shutdown of Saudi Arabia’s biggest offshore oil field, according to a Reuters report. Brent rose as far as $65.10, pushing past the $65 mark for the first time this year, before falling back to $64.69 by 0751 GMT. That was still 0.2 per cent above the last close.
Weakness in global markets
Asian stocks fell on Friday, retreating from four-month highs after data out of China raised concerns over deflationary pressures building in the world’s second-biggest economy. The equity markets had already been under pressure after weak US retail sales figures triggered fresh doubts about the strength of the world’s largest economy, stated a Reuters report.
Emergence of low-level buying
After declining nearly a per cent, the benchmark indices saw low-level buying with NSE flagship Nifty recovering from near 10,600 levels while the BSE Sensex rebounded from 35,500 level. “A negative candle was formed today with long lower shadow. This daily candle is resembling a bullish hammer, but not a classical one. Hence, today’s pattern is signaling an emergence of some buying interest from near 10600 level,” said Nagaraj Shetti, Technical Research Analyst, HDFC securities.
Vinod Nair, Head of Research, Geojit Financial Services
Market slid due to broad-based selling across sectors as rising yield and weak rupee cast cloud over investor’s sentiment. Volatility may continue due to lack of positive triggers in the domestic market while rising oil prices will impact domestic macros in the near term. Global markets turned negative due to obstacles in the US-China trade deal.