Sensex falls for third day as private banks bleed
For the week, both Sensex and Nifty settled 0.40 per cent lower.
The rise in crude oil prices sent domestic currency hurtling lower. The rupee lost as much as 27 paise against the US dollar.
Liquidity concerns in the NBFC sector continued to plague the market.
BSE Sensex slipped to 39,452, down 289 points or 0.73 per cent. NSE Nifty shed 91 points or 0.76 per cent to shut shop at 11,823. For the week, both Sensex and Nifty settled 0.40 per cent lower.
The advance-decline ratio stood at 1:2.
The poor sentiment in global equity markets reflected in gold prices, which rose to 14-month high as investors scurried towards safer bets.
Markets at a glance
In the 30-stock pack, only five stocks shut shop in the green and that too with meager gains. The best performer down L&T rose just 0.80 per cent. Sun Pharma, Vedanta, Power Grid and TCS too joined L&T on gainer list, rising between 0.58 per cent and 0.09 per cent.
On the other hand, IndusInd Bank shares slipped 4.36 per cent to Rs 1425.10. The scrip in intraday trade hit its lowest level since May 22.
Bharti Airtel, Axis Bank, Kotak Mahindra Bank, Tata Motors and Bajaj Auto were among other losers, sliding up to 2.74 per cent.
In the Nifty pack, 42 stocks declined and seven climbed while one remained unchanged.
Midcap index on BSE dropped 1.02 per cent whereas the smallcap index declined 0.76 per cent.
BSE Capital Goods was the only sector that ended in the green. Telecom, realty and bankex, on the other hand, shed the most.
Factors that weighed on the market:
Global stocks stumble
World stocks struggled and safe haven bets were back in play on Friday with German bond yields plumbing record lows as Chinese data rekindled woes about the health of the global economy and fears of a new US-Iran confrontation intensified, Reuters reported.
The pan-European STOXX 600 index fell 0.5 per cent, with Germany's trade-sensitive DAX falling 0.6 per cent. US stock futures indicated Wall Street was in line for a lower open, with the S&P e-mini pointing to a 0.2 per cent fall.
Crude oil prices stay elevated
Oil fell marginally after sharp gains in the previous session when prices were boosted after attacks on two oil tankers in the Gulf of Oman stoked concerns of reduced crude flows through one of the world's key shipping routes. Brent crude futures were down 14 cents at $61.17 a barrel, having settled up 2.2% on Thursday.
High valuation, slow economy remain a risk
Premium valuation and slowdown economy are other factors that are causing investors to pare their position in this market. Meanwhile, all eyes will be on US Fed meet next week to see if the US central banker would cut rate.
Ripple effect from a weak global markets while premium valuation and slow economy is hurting the market. Continuous exchange of words between the US and Tehran regarding the oil tanker attack, progress of US-China trade-war, Fed policy outcome and progress of monsoon will be closely watched by the investors. The market is cautious awaiting these important events while companies highly leveraged are being mostly impacted
- Vinod Nair, Head of Research, Geojit Financial Services