Sensex ended over 200 points lower in choppy trade on Friday, tracking losses in consumer durables and IT stocks. The 30-share index fell 202 points to 47,878 and Nifty lost 64.80 points to 14,341.
M&M was the top Sensex loser falling over 2 per cent, followed by Dr Reddy's Bharti Airtel, Tech Mahindra, HUL, ICICI Bank and Infosys.
PowerGrid, NTPC, IndusInd Bank, Axis Bank, HDFC and Asian Paints were among the top Sensex gainers rising up to 3.51%. Of 30 Sensex stocks, 22 ended in the red.
Rusmik Oza, Executive Vice President, Head of Fundamental Research at Kotak Securities said Indian markets succumbed to FPI selling this week on account of the sharp rise in COVID-19 cases.
"As India has become the epicentre of the virus resurgence, there is fear of potential earnings downgrades which could turn out to be higher in case of mid and small caps vis- -vis the large caps. Fresh lockdowns and restrictions being imposed by various state governments will impact demand and also business activity. The persistent rise in hard commodity prices is a threat which could weigh on margins of many manufacturing companies. Too many potential negatives have come together which could impact markets in the very near future," he said.
India logged a record of over 3.32 lakh new coronavirus cases in a single day, taking the country's tally to 1,62,63,695, while active cases crossed the 24-lakh mark, according to the Union Health Ministry data updated on Friday.
BSE mid cap and small cap indices indices rose 32 and 106 points, respectively in trade today. Market cap of BSE-listed firms fell by Rs 0.24 lakh crore to Rs 202.37 lakh crore in today's session against market cap of Rs 202.61 lakh crore in previous session. Market breadth was positive with 1,589 stocks ending higher against 1,336 falling on BSE. 174 stocks were unchanged.
Sectorally, consumer durables and IT stocks led the losses with their BSE indices falling 135 points and 203 points, respectively.
The rupee closed 7 paise lower below the 75 mark against the US dollar as a record spike in COVID-19 cases and losses in the domestic equities weighed on investor sentiment. The rupee ended at 75.01 against the US currency, registering a fall of 7 paise over its previous close.
Vinod Nair, Head of Research at Geojit Financial Services said,"Following weakness in the US market, domestic market continued to be under the grip of bears. Reports of a possible increase in capital gains tax in the US took a toll on the global equities. Increasing covid cases and lockdown also fueled a downward trend in the domestic market. All major sectors were in negative territory while Pharma and mid & small-caps outperformed the broad market."
In Asia, the Shanghai Composite Index rose 0.3% to 3,474.17 while the Nikkei 225 in Tokyo lost 0.6% to 29,0290.63. The Hang Seng in Hong Kong gained 1.1% to 29,078.75.
The Kospi in Seoul advanced 0.3% to 3,186.10 and Sydney's S&P-ASX 200 added less than 0.1% to 7,060.70.