Sensex crumbles over 500 points; Nifty breaks 7,650

Markets have started the session on a lower note tracking weakness in the Asian peers and a mixed close on the Wall Street as investors remain cautious ahead of the US non-farm payroll data due to be released later today.

By 10:53 a.m., the Sensex had dumped 551 points at 25,214 and the Nifty slipped 171 points at 7,649.

The broader markets are trading dismal in line with the benchmark indices- BSE Midcapa nd Smallcap indices are down almsot 1%. Market breadth remain weak with 947 losers and 316 gainers on the BSE.

Meanwhile, on the global front, European Central Bank President Mario Draghi sent a strong signal Thursday that the bank is prepared to expand its already massive bond-buying program, underscoring an increasing divergence in the monetary policies of the world’s largest central banks.

Back home, foreign portfolio investors (FPIs) sold shares worth a net Rs 394.31 crore yesterday as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 840.35 crore yesterday as per provisional data.

GLOBAL MARKETS

Asian shares were mixed on Friday as caution about a US jobs report jostled with signals from the European Central Bank that it is willing to take further steps to shore up the European economy.

MSCI's broadest index of Asia-Pacific shares outside Japan slipped 0.2% after rising in early trade. They've fallen 3.4% this week. Japan's Nikkei fell 0.9%, extending losses this week to 6.0%.

Wall Street shares ended up on Thursday, though they pared back much of earlier gains. The S&P 500 gained 0.1% but the Nasdaq Composite ended 0.4% lower.

SECTORS & STOCKS

BSE Bankex has plunged by over 1.5% followed by counters like Auto, Metal Power and Realty, all slipping over 1% each. Infact, all the sectoral indices are trading in negative zone.

The top losers from the Sensex pack are Tata Steel, Axis Bank, Tata Motors, BHEL, Hero Moto, Vedanta, HDFC Bank and HDFC.

According to the CRISIL report, the proposed regime for computing base rate, the benchmark for pricing loans, might burn a big hole in the bottom line of banks in the next financial year. Banks might take a one-time hit of Rs 20,000 crore to follow the Reserve Bank of India (RBI)’s prescription to use marginal cost of funding to decide base rate.

London based diversified metals and mining major Vedanta Resources today ruled out any rethink on its planned shutdown of the Lanjigarh refinery in Odisha.

On the gaining side, Cipla is in talks to acquire Hetero Drugs' US business, a media report said on Thursday. The deal values the US business at $500-550 million and will give Cipla access to generic drug portfolio and abbreviated new drug application pipeline, the report said. Shares of Cipla are up by almost 2%.

Wipro has gained marginally after bagging contract to become a digital partner of a, European football team.

Lupin has gained over 0.5% after launching 40 mg variant of Duloxetine delayed-release capsule in the US market.