Nifty, Sensex settle lower as earnings lack spark
The market squandered a positive start as selling pressure took hold after not so encouraging results of TCS, which came in after markets hours on Thursday.
Caution filled the air as investors remained sceptical of the Q3 earnings trajectory.
The Sensex declined 97 points, 0.27 per cent, to 36,010, with as many as 21 in the red and the rest in the green. Its Nifty counterpart settled at 10,795, down 27 points, or 0.25 per cent, with 16 stocks up and 34 down.
IndusInd Bank fell the most, down 3.26 per cent. TataMotors, TCS, Yes Bank, L&T and Tata Steel all were on the losing side.
TCS proved to be the biggest drag of the day, accounting for much of the downside.
On a weekly basis, the Sensex gained 314.74 points while the Nifty rose by 67.60 points.
In sectoral play, all sectors barring FMCG lost. Realty lost the most by 1.43 per cent.
Broader markets such as midcap and smallcap indices weakened by 0.13 per cent and 0.19 per cent, respectively.
Let's take you through what really brought down the market today.
1. Oil back on the boil: Rising crude prices kept sentiment somewhat downbeat. Oil prices firmed up by 0.78 per cent to Rs 3,744 per barrel on Friday. That was enough to keep investors on edge.
2. Q3 earnings lack the spark: Early birds in the ongoing December quarter earnings season, according to analysts, have failed to live up to Street expectations. Some, however, still expect domestic lenders to report good earnings, going ahead.
3. Meandering trade talks: The US-China trade talks still remained a major overhang as market participants waited for more clarity to emerge. Lack of any significant progress gave the bears more fodder.
4. Rupee a pale shadow: There was nothing much to write home about for the rupee as the local currency failed to gain ground. It settled weak against the US greenback at 70.49.
Jayant Manglik, President, Religare Broking
"Furthermore, the rupee fell and pushed the markets further south. Rupee which was appreciating in the morning reversed gains and depreciated by 5 paise at 70.52 against the greenback. The rupee has slid about a percent versus dollar this year after posting the best quarterly gain since March 2017."