Mumbai: Equity benchmark Sensex declined 202 points on Friday, tracking losses in ICICI Bank, Infosys and HUL amid persistent concerns over the economic impact of the second wave of COVID-19 pandemic in the country.
After a volatile session, the 30-share BSE index ended 202.22 points or 0.42 per cent lower at 47,878.45.
Similarly, the broader NSE Nifty dropped 64.80 points or 0.45 per cent to 14,341.35.
M&M was the top loser in the Sensex pack, shedding over 2 per cent, followed by Dr Reddy’s Bharti Airtel, Tech Mahindra, HUL, ICICI Bank and Infosys.
On the other hand, PowerGrid, NTPC, IndusInd Bank, Axis Bank, HDFC and Asian Paints were among the gainers.
“It was a choppy trading day and benchmark indices fell sharply towards the final session of the market mainly led be selling pressure in across the sectors barring PSU Banks. Concerns of rising COVID-19 cases continued to weigh on investors sentiments,” said Binod Modi, Head Strategy at Reliance Securities.
According to Rusmik Oza, Executive Vice President, Head of Fundamental Research at Kotak Securities, Indian markets succumbed to FPI selling this week on account of the sharp rise in COVID-19 cases. FPIs have remained net sellers this week with the rupee sustaining at 75 levels against the USD.
“As India has become the epicentre of the virus resurgence, there is fear of potential earnings downgrades which could turn out to be higher in case of mid and small caps vis- -vis the large caps.
“Fresh lockdowns and restrictions being imposed by various state governments will impact demand and also business activity. The persistent rise in hard commodity prices is a threat which could weigh on margins of many manufacturing companies. Too many potential negatives have come together which could impact markets in the very near future,” he said.
India added a record over 3.32 lakh new coronavirus cases in a single day, taking the country’s tally to 1,62,63,695, while active cases crossed the 24-lakh mark, according to the Union Health Ministry data updated on Friday.
Elsewhere in Asia, bourses in Shanghai, Hong Kong and Seoul ended on a positive note, while Tokyo was in the red.
Stock exchanges in Europe were trading with losses in mid-session deals.
Meanwhile, international oil benchmark Brent crude was trading 0.06 per cent lower at USD 65.36 per barrel.
Gold Falls Marginally; Silver Declines Rs 909
The price of gold was marginally lower by Rs 24 to Rs 47,273 per 10 gram in the national capital on Friday, according to HDFC Securities.
In the previous trade, the precious metal had closed at Rs 47,297 per 10 gram.
Silver also declined Rs 909 to Rs 68,062 per kg, from Rs 68,971 per kg in the previous trade.
In the international market, gold was quoting marginally higher at USD 1,784 per ounce and silver was flat at USD 26.05 per ounce.
HDFC Securities Senior Analyst (Commodities) Tapan Patel said, “Gold prices traded firm with spot gold prices at COMEX (New York-based commodities exchange) were trading at USD 1,784 per ounce on Friday. Gold prices held firm trading range recovering from Thursday’s lows.”
Rupee Falls By 7 Paise To Close Below 75 Mark Against Dollar
The rupee fell by 7 paise to close below the 75 mark against the US dollar on Friday as a record spike in COVID-19 cases and losses in the domestic equities weighed on investor sentiment.
Forex traders said heavy selloff in domestic equities amid fears that a rapid resurgence of COVID-19 cases in the country can disrupt economic recovery kept investors on edge.
At the interbank forex market, the local unit opened lower at 75.02 against the previous close of 74.94 and traded in the range of 74.75 to 75.07 during the day.
The rupee finally ended at 75.01 against the US currency, registering a fall of 7 paise over its previous close.
“The second wave of COVID-19 in India is keeping market risk sentiment very light and the USDINR spot is afloat. So, the USDINR bulls will continue to be on driver’s seat, but we will only have to look for RBI intervention. We expect a broader USDINR range to be 74.50-75.50,” said Rahul Gupta, Head Of Research- Currency, Emkay Global Financial Services.
With a record single-day rise of 3,32,730 new coronavirus infections, India’s total tally of COVID-19 cases climbed to 1,62,63,695, while active cases crossed the 24-lakh mark, according to the Union Health Ministry data updated on Friday.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.34 per cent to 91.02.
Brent crude futures, the global oil benchmark, were trading 0.06 per cent down at USD 65.36 per barrel.
On the domestic equity market front, the BSE Sensex ended 202.22 points or 0.42 per cent lower at 47,878.45, while the broader NSE Nifty declined 64.80 points or 0.45 per cent to 14,341.35.
Foreign institutional investors (FIIs) remained net sellers in the capital markets, as they pulled out Rs 909.56 crore on Thursday, according to the provisional data.
(This Story Is A Compilation of 3 PTI Stories)