Mumbai: Equity indices buckled under selling pressure for the second straight session on Friday as risk appetite remained subdued amid lacklustre global cues and lower-than-expected results from IT major TCS.
Banking, finance and IT counters accounted for most of the losses, while strong demand for metal stocks cushioned the fall.
The 30-share BSE Sensex ended 182.75 points or 0.35 per cent lower at 52,386.19. The broader NSE Nifty dropped 38.10 points or 0.24 per cent to close at 15,689.80.
Bajaj Auto was the top laggard on the Sensex chart, shedding 1.99 per cent, followed by TCS which dropped 1.52 per cent post its results.
The country’s largest IT firm had on Thursday reported a 28.5 per cent jump in June quarter net profit at Rs 9,008 crore, but called out the domestic business as a drag which restricted its overall growth.
HDFC Bank, Axis Bank, Reliance Industries, Tech Mahindra, Kotak Bank and IndusInd Bank were among the other losers.
On the other hand, Tata Steel led the gainers’ list with a jump of 4.16 per cent, followed by Bajaj Finserv, Bharti Airtel, NTPC, Maruti and Bajaj Finance.
During the week, the Sensex declined 98.48 points or 0.18 per cent, while the Nifty dropped 32.40 points or 0.20 per cent.
Domestic equities traded on a weak note on Friday mainly led by continued profit-booking in financials, said Binod Modi, Head – Strategy at Reliance Securities.
However, metals, pharma and realty indices shined, while IT index remained soft after TCS missed earnings estimates, he said, adding that buying momentum remained visible in midcap and smallcap stocks as improved earnings prospect attracted investors’ interest.
“While visible improvement in business momentum with ease of business curbs by states started offering comfort, recent uptick in daily caseload and increasing positive rate could be a near term risk as we saw Japan imposing fresh restrictions in Tokyo,” he noted.
Vinod Nair, Head of Research at Geojit Financial Services, said, “The domestic market continued to be under the grip of bears following weak Asian peers as investor confidence was shattered due to the global spread of Delta virus variant. The equity market is turning risk-averse and side-lined.”
“The IT sector also turned bearish as the initial earnings results did not meet the expectations of the market….The focus of domestic investors has shifted from secondary to attractive primary IPOs, affecting the liquidity of trading in the equity market, which we believe to be short-term,” he added.
Sectorally, BSE energy, bankex, oil and gas, IT and capital goods indices shed up to 0.71 per cent, while realty, metal, telecom, basic materials and healthcare climbed as much as 2.38 per cent.
Broader BSE midcap and smallcap gauges outperformed the benchmark, closing up to 0.61 per cent higher.
World markets were little changed as investors assessed the impact of the fast-spreading Delta variant of the coronavirus on global economic recovery.
Elsewhere in Asia, bourses in Shanghai, Seoul and Tokyo ended in the red, while Hong Kong was positive.
Stock exchanges in Europe were trading with gains in mid-session deals.
Meanwhile, international oil benchmark Brent crude rose 1.08 per cent to USD 74.92 per barrel.
The rupee gained 7 paise to end at 74.64 against the US currency on Friday, tracking weakness in the American currency in the overseas market.
Foreign institutional investors were net sellers in the capital market on Thursday as they offloaded shares worth Rs 554.92 crore, as per exchange data.