BSE Realty index plummeted by almost 4%
Benchmark share indices extended losses to end over 1% lower on Friday, amid weak global cues, dragged by index heavyweights Reliance Industries and bank shares.
The Sensex which touched an intra-day low of 19,221 ended down 212 points at 19,242 while the Nifty which touched an intra-day low of 5,842 ended lower by 69 points at 5,848.
On the global front, Asian shares slid on Friday after a Republican proposal to deal with a US fiscal crunch failed to get enough support, deepening uncertainty over the US can avert the "fiscal cliff" of automatic spending cuts and tax increases set to start January 1. Nikkei, Hang Seng, Taiwan, Kospi and Shanghai Composite declined by 1% each.
European shares opened lower on concerns that solutions to the US 'fiscal cliff' could possibly take longer-than-expected. CAC, DAX and FTSE fell by 1% each.
Back home, foreign direct investment (FDI) inflows into India jumped 67% in October to $1.94 billion, a government statement said on Friday, but inflows for the current financial year were still down.
Meanwhile, global rating agency Standard and Poor's (S&P) has said it expects India to grow by 6.5% during 2013, amidst the possibility of global economic recovery continuing during the year.
On the sectoral front, BSE Realty index plummeted by almost 4% followed by counters like Metal, Healthcare, Capital Goods, Power and Oil & Gas, all slumping by nearly 2% each. Infact, all the major BSE sectoral indices ended in red zone.
Among metal shares, JSPL was the top Sensex loser, down nearly 4%. Sterlite and Hindalco slipped between 2-3%.
From the Realty space, Prestige Estates, DLF, HDIL and Prestige Estates fell between 2-5%.
According to Salil Sharma, Technical Analyst, Partner, kapursharma.com, “HDIL is weakening. The stock can head lower and is a relative under performer among these stocks. If it closes above Rs 114 then only it can be bought. DLF has not done well compared to other real estate stocks. It is likely to do well going ahead one can buy this stock with stop loss at Rs 220 and target of Rs 241 (Duration 2 weeks)”.
Index heavyweight Reliance Inds plunged nearly 2%. ONGC has slipped over 1%.
Bharti Airtel declined by over 3%. The Central Bureau of Investigation (CBI) filed charges against Bharti Airtel Ltd and Vodafone Group Plc's India unit today as part of a probe into alleged corruption in allocation of mobile phone airwaves a decade ago, a lawyer said.
Banks which are a proxy to the economy also faced the brunt of selling pressure. SBI, ICICI Bnak and HDFC Bank fell between 1-2%.
Auto shares like Tata Motors, M&M, Maruti Suzuki and Bajaj Auto declined between 1-2%.
Other prominent losers included Sun Pharma, DRL, BHEL, L&T, Tata Power, Cipla and CIL.
The broader markets underperformed the benchmark indices. The BSE mid-cap and small-cap indices plunged by almost 1.5% each.
The overall breadth in BSE ended dismal as 1,937 stocks are declining while 979 are advancing.
Indo Tech Transformers was locked in lower circuit of 5% at Rs 161 on the NSE after the company fixed an indicative price of Rs 120 per share for delisting of equity shares from both the stock exchanges.
Gulf Oil Corporation (GOCL) moved higher by 3% after the company said that it has completed acquisition of Houghton International Inc. for $1.045 billion.
IFCI ended lower by 6% on equity dilution concerns after its board allotted over 500 million equity shares of the company following the conversion of Optionally Convertible Debentures (OCDs).
Cairn India plunged by 2.5% on reports that oil exploration and production firm may revise its production guidance in the third quarter results announcement in January 2013 due to slower ramp-up at Bhagyam field.
Persistent Systems ended higher by 4%, also its record high on the BSE, on the back of heavy volumes.
Jet Airways (India) dipped over 7% at Rs 567 on back of heavy volumes on the counter.
The market breadth was firm. Out of 2,933 stocks traded , 1,685 stocks advanced compared to 1,136 declined on BSE