Benchmark indices Sensex and Nifty on Friday retreated from record highs as investors scrambled to book profits in recent high-flying stocks amid fears that India’s second quarter GDP numbers may slip further.
The 30-share BSE gauge plummeted 336.36 points or 0.82 per cent to close at 40,793.81. The index swung about 466 points during the day.
Likewise, the broader NSE Nifty also settled 95.10 points or 0.78 per cent down at 12,056.05.
On a weekly basis, the Sensex advanced 434.40 points or 1.07 per cent; while the Nifty rose 141.65 points or 1.18 per cent.
Investor sentiment during the week was mainly driven by positive news about US-China trade talks progress and continuation of measures by the government to boost consumer demand and economic growth.
“Profit booking ahead of economic data and selling pressure in Asian peers due to risk of retaliation from China add volatility in the market. The recent rally has lifted the market to supreme valuation which may limit the headroom of key indices to perform well in the short-term. Consequently, investors are likely to shift focus for quality mid & small caps, which are likely to out-perform in the near term,” Vinod Nair, head of research at Geojit Financial Services, said.
Sanjeev Zarbade, VP PCG Research, Kotak Securities, said major global markets were mostly positive for the week, the Chinese markets being an exception.
“Chinese equities remained under pressure on the back of ongoing turmoil in Hong Kong. Tensions rose between US and China after the US passed a law supporting the Hong Kong protests. The BSE-30 Index gained (1.1%) in the week to reach a new life-time high.
“Markets were buoyed by progress on phase-1 of the US-China trade deal, resolution of stress in financial sectors and multiple government initiatives to arrest the ongoing economic slowdown,” he said.
Shares of Reliance Communications hit their upper circuit for the sixth consecutive session on Friday amid reports that Bharti Airtel has submitted conditional bids of around Rs 9,500 crore for the assets of the debt-ridden firm.
On the BSE, the stock settled 3.85 per cent up at 81 paise. The stock has gained over 42 per cent in 9 trading sessions.
Shares of Bharti Airtel closed 1.28 per cent up at Rs 442.30 on the BSE.
Yes Bank was the top loser in the Sensex pack, shedding 2.50 per cent, followed by HUL that fell 2.37 per cent, M&M 2.12 per cent, SBI 2.03 per cent, Tata Motors 2.03 per cent and Vedanta 1.97 per cent. On the other hand, HDFC Bank and NTPC ended with gains.
Sectorally, BSE energy, metal, auto, oil and gas, capital goods and FMCG indices fell up to 1.46 per cent while BSE telecom, realty, utilities and power indices rose up to 2.54 per cent.
Broader BSE midcap and smallcap indices rose up to 0.47 per cent.
Investors turned cautious ahead of Q2 gross domestic product (GDP) growth data, as many economists feel that growth numbers will further weaken from the 5 per cent in Q1.
Weak cues from global markets also weighed on market mood, they added.
Bourses in Hong Kong, Tokyo, Kospi and Seoul ended in the red as US law supporting pro-democracy protesters in Hong Kong put a dampener on hopes of an early trade truce over tariffs.
Stocks in Europe were trading on a positive note.
Rupee slips 12 paise
On the currency front, the rupee settled 12 paise lower at 71.74 against the US dollar, tracking heavy selling in domestic equities and growth concerns ahead of the release of GDP data.
Forex traders said month-end dollar demand from importers and uncertainty over the US-China trade talks also weighed on the domestic currency.
At the interbank foreign exchange market, the local currency opened weak at 71.63 and during the day, it lost further ground and fell to a low of 71.87.
The rupee finally settled at 71.74, lower by 12 paise against its previous close.
On Thursday, the local unit had settled at 71.62 against the greenback.
On a weekly basis, the domestic unit has lost 3 paise.
Forex traders said investors turned cautious ahead of the release of the Q2 gross domestic product (GDP) numbers. The second-quarter GDP number is scheduled to be announced later in the day.