Expectations of slower GDP numbers for September quarter (Q2FY20) due later in the day and weak global cues weighed on investor sentiment on Friday with the benchmark indices sliding nearly a per cent.
It is widely expected that the second quarter GDP print will slip below 5 per cent on subdued consumer demand, weakening private investment and falling exports courtesy global slowdown.
The S&P BSE Sensex lost 336 points or 0.82 per cent to settle at 40,794 with YES Bank (down 2.50 per cent) being the top loser and Bharti Airtel (up over a per cent) the biggest gainer. During the day, the index hit a low of 40,664.18 levels. Reliance Industries (RIL), ICICI Bank, Hindustan Unilever (HUL), and State Bank of India (SBI) contributed the most to the index's fall.
NSE's Nifty50 index closed the session at 12,056, down 95 points or 0.78 per cent.
On a weekly basis, Sensex gained 0.54 per cent and Nifty added 0.66 per cent.
In the broader market, Nifty Midcap 100 index ended flat at 17,222, up 0.06 per cent while Nifty SmallCap 100 index outperformed the benchmarks by settling nearly a per cent higher.
Sectorally, except realty stocks, all the counters ended in the red. Media stocks tumbled the most, followed by PSU banks, metals and auto stocks. The Nifty Realty index ended a per cent higher at 282 levels.
Buzzing stocks of the day:
Zee Entertainment slipped nearly 6 per cent to end at Rs 293.55 apiece on the BSE. The stock has been under pressure on series of developments such as Subhash Chandra's resignation as chairman of the company and then stepping down of three directors.
Shares of Future Group companies rallied in the trade a day after the Competition Commission of India (CCI) said it has approved Amazon.com NV Investment Holdings' proposal to acquire about 49 per cent share in Future Coupons (FCL) - a subsidiary of Future Group.
Indiabulls Housing Finance rallied 13 per cent to Rs 377 during the day on the National Stock Exchange (NSE) after foreign portfolio investors (FPIs) bought nearly one percentage points stake in the company through open market. The stock of the housing finance company had zoomed 25 per cent on Thursday. However, the stock reversed gains in the intra-day deals to end at Rs 290, down over 13 per cent on the BSE.
Asian shares slipped, knocking a global stock index off its path to hitting an all-time peak as investors turned cautious, fearing a new US law backing Hong Kong protesters could torpedo efforts to end the US-China trade war. MSCI's broadest index of Asia-Pacific shares outside Japan fell more than 1 per cent. Hong Kong led the dip with losses of 2 per cent.
South Korean shares lost 1.4 per cent and Japan's Nikkei eased 0.5 per cent. China's blue-chips gave up 1.3 per cent a day before the country reports manufacturing activity.
In commodities, oil prices were mixed. Investors awaited a meeting of OPEC and its allies next week that may result in the extension of an output cut agreement to support the market.