Global cues pull equities lower; banks stocks slump (Roundup)

Indian equities on Friday plunged into the negative territory amid a global sell-off, with the key indices -- the BSE Sensex and NSE Nifty50 -- shedding over 400 points and 100 points respectively, a fall of over 1 per cent each.

According to market observers, heavy selling pressure in banking, auto and capital goods stocks, along with continuous outflow of foreign funds, added to the downward trajectory of the equity indices.

On the global front, Asian markets slumped on Friday tracking the decline in US stocks overnight (Thursday). The benchmark Dow Jones declined over 1,000-points for the second time this week as rising bonds yields dented investors' sentiments.

The barometer 30-scrip Sensitive Index (Sensex) of the BSE closed at 34,005.76 points -- down 407.40 points or 1.18 per cent from its previous session's close.

The BSE market breadth was bearish with 1,403 declines and 1,369 advances.

On the National Stock Exchange (NSE), the wider Nifty50 fell by 121.90 points or 1.15 per cent to close at 10,454.95 points.

"Indian equities did not do much post gap-down opening in Friday trade. Asian stocks tumbled to two-month lows after US shares plummeted again in the face of rapidly rising bond yields," Dhruv Desai, Director and Chief Operating Officer of Tradebulls, told IANS.

In the broader markets, the S&P BSE mid-cap index fell mere 0.09 per cent, while the small-cap index edged up by 0.23 per cent.

"Markets corrected further on Friday. A bounce back from the lows helped to curb the losses. The weakness came on the back of negative Asian and European equity markets," Deepak Jasani, Head - Retail Research, HDFC Securities, told IANS.

"Major Asian markets have closed on a negative note. European indices like FTSE 100, DAX and CAC 40 traded in the red," he added.

On the currency front, the Indian rupee weakened by 14 paise to close at 64.40 against the US dollar from its previous close at 64.26.

In terms of investments, provisional data with the exchanges showed that foreign institutional investors sold scrips worth Rs 1,351.70 crore while domestic institutional investors bought stocks worth Rs 588.42 crore.

Vinod Nair, Head of Research, Geojit Financial Services, said: "Banks are underperforming, while some buying interest was seen in mid and small-caps after the recent sharp correction."

Sector-wise, the S&P BSE banking index plunged by 514.03 points, followed by auto index by 239.88 points and capital goods index by 141.24 points.

On the other hand, the S&P BSE metal index rose by 186.87 points, consumer durables by 48.65 points, and realty index by 13.85 points.

Major Sensex gainers on Friday were: Tata Steel, up 1.83 per cent at Rs 683.65; Dr Reddy's Lab, up 0.73 per cent at Rs 2,194.80; Asian Paints, up 0.67 per cent at Rs 1,131.55; Hindustan Unilever, up 0.23 per cent at Rs 1,335.40; and Tata Consultancy Services, up 0.20 per cent at Rs 2,972.30.

Major Sensex losers were: Yes Bank, down 2.84 per cent at Rs 325.55; ICICI Bank, down 2.33 per cent at Rs 326.75; HDFC, down 2.13 per cent at Rs 1,773.20; Infosys, down 2.01 per cent at Rs 1,111.80; and Axis Bank, down 1.93 per cent at Rs 557.50.

--IANS

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