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Markets remained subdued with 30-share Sensex shedding 280 points in the afternoon session this Friday after country’s fourth quarter economic growth expanded at its slowest pace in a decade.
Adding to the pessimism was the statement by the Reserve Bank of India’s governor on Thursday after he hinted at upside risks to retail inflation.
At 1PM, the Bombay Stock Exchange's 30-share index Sensex declined 280 points at 19,935 while the National Stock Exchange's 50-share was down 88 points at 6,035.
India's GDP refused to grow by large numbers despite the much-touted reforms, growing at a snail's pace of 4.8% in the fourth quarter from 4.7% in the third quarter of 2012-13.
Global risk appetite was also frail amid looming fear over a pull-back of stimulus by the US Federal Reserve earlier than expected.
Asian shares traded lower with Hong Kong’s Hang Seng falling 0.3% to 22,405, China’s Shanghai Composite declined 0.7% to 2,300, Singapore’s Straits Times fell 0.6% to 3,316 while Japan’s Nikkei rose 1.3% to 13,774 today.
Meanwhile, European markets were lower in opening deals. France’s CAC fell 0.6% to 3,972, UK’s FTSE declined 0.6% to 6,611 while Germany’s DAX was down 0.6% to 8,348.
Back home, barring IT index, rest all declined with FMCG, oil & gas, realty, bankex, capital goods, metal sectors topping the charts on the BSE.
The gainers on the Sensex included Sterlite Industries rose 1.4%, Infosys and TCS gained 1% and 0.2% while DR Reddy’s rose 0.5% on the BSE.
The laggards were Hindalco Industries declined 3.4%, ITC fell 3.2%, Mahindra & Mahindra dropped 3%, Reliance Industries shed 2.6% while HDFC Bank and SBI were down 2.6% and 1.3% respectively on the BSE.
The key notable movers were, ITC which was down over 3% after the stock was quoted ex-dividend from today. The board of directors, at its meeting held on May 17, had proposed a dividend of Rs 5.25 per equity share of face value Rs 1/-each.
SAIL has dropped 2% at Rs 58 following a 72% decline in net profit at Rs 446.53 crore.
Steel Authority of India Ltd had a 71.7 per cent decline in net profit at Rs 446.5 crore for the quarter ended March 31, due to lower sales and high interest cost.
The broader markets fell with mid-caps and small-caps dropping nearly 0.5% on the BSE.
The market breadth was negative. Out of 2,193 stocks traded, 1,303 stocks declined compared to 764 advances on the BSE.
