Equity markets fell for the third straight day on Friday because of profit booking in heavyweight Reliance Industries (RIL) and weak global cues. The Sensex declined 129.18 points, or 0.34%, to close at 37,606.89 while the Nifty was down by 28.7 points, or 0.26%, to close at 11,073.45. Both the Sensex and Nifty fell more than by 1% on a weekly basis.
Sanjeev Zarbade, vice president — private client group research, Kotak Securities, said, “This week, the global markets were in a consolidation mode and a similar thing played out in India as well as reflected by the BSE-30 Index which declined 1.3% in the current week. Market mood remained cautious due to insufficient progress on the next round of US fiscal stimulus, worries about credit risks in Indian banks and valuation-related concerns.”
The US reported its sharpest-ever GDP contraction on Thursday. The country’s GDP contracted by 32.9% in annualised terms. This soured the Street sentiment and Asian shares witnessed a negative trading session, with the stock markets in Hong Kong, Taiwan and South Korea declining by 0.47% to 0.7%.
Foreign portfolio investors (FPIs) have remained buyers for July with inflows at $1.1 billion in total. According to Friday’s provisional data, FPIs sold stocks worth $127.8 million.
The Futures and Options segment on the NSE saw a turnover worth Rs 11.37 lakh crore, against the six month-average of Rs 14.9 lakh crore.
Profit booking in RIL saw its shares declining by 1.84% to close at Rs 2,070. The biggest losers on the Nifty were Eicher Motors, RIL, HDFC Bank, Bajaj Auto and Kotak Mahindra Bank — down by 2.74%, 1.84%, 1.66%, 1.61%, and 1.43%, respectively. Major gainers included Sun Pharma, Cipla, Grasim, JSW Steel, and UPL, up by 5.46%, 5.11%, 4.98%, 2.85%, and 2.84%, respectively.