Sensex falls 223 points, Nifty settles below 18,600; Paytm & HAL rise up to 6%; IEX tanks 10%

Domestic equity markets extended their fall for the second straight session on Friday on the back of feeble global cues. Traders were cautious over key macroeconomic data over inflation due on Monday and took profits off the table. Also, the US Fed meeting next week also kept traders on tenterhooks.

For the day, the 30-share pack, BSE Sensex dropped 223.01 points, or 0.35 per cent, to close at 62,625.63, while NSE's Nifty50 declined 71.15 points, or 0.38 per cent, to end the session at 18,563.40. Broader markets outperformed the headline peers as BSE midcap and smallcap indices settled in green. Fear gauge India VIX declined more than a per cent to 11.12-level.

Markets edged lower and lost nearly half a percent, in continuation to the previous session’s fall.  After the flat start, the Nifty gradually inched lower as the day progressed and finally settled around the day’s low at 18,563.40 levels. The majority of sectors aligned with the benchmark move and ended lower, said Ajit Mishra, SVP - Technical Research, Religare Broking.

"Indications are pointing towards a further slide in the Nifty index however downside also seems capped citing support at 18,400 levels. We recommend focusing more on position management during the corrective phase and preferring sectors/stocks that are showing relatively higher strength," he said.

Indications are pointing towards a further slide in the Nifty index however downside also seems capped citing support at 18,400 levels. We recommend focusing more on position management during the corrective phase and preferring sectors/stocks that are showing relatively higher strength.

Barring the Nifty realty and private bank indices, all the sectoral indices settled lower during the day. Nifty PSU bank index dropped more than a per cent, while Nifty FMCG, IT, media and consumer durable indices saw significant cuts for the day.

In the Nifty50 index, Nifty Hero MotoCorp, HDFC Life Insurance Company and Divis Labs dropped 2 per cent each, while Divis Labs, Eicher Motors, Tata Steel and State Bank of India were other laggards. Among the gainers, IndusInd Bank rose 2 per cent, followed by Axis Bank, Power Grid and Adani Enterprises which added over a per cent, each.

The domestic market witnessed extended selling pressure as investors eagerly awaited the domestic inflation data due on Monday as the RBI refrained from an aggressive cut in their inflation forecast, said Vinod Nair, Head of Research at Geojit Financial Services.

"The market is hopeful that the CPI inflation for May will further moderate from its current level of 4.7 per cent. In addition to the domestic factors, global cues also failed to provide support, as the US reported high unemployment claims ahead of the release of the inflation figures and the Fed meeting," he said.

A total of 3,648 shares were traded on BSE on Friday, of which 1,798 settled with cuts. 1,738 stocks ended the session higher while 112 shares remained unchanged. A total of 211 shares hit their upper circuit, whereas 110 shares tested the lower circuit levels for the day.

In the broader markets, EKI Green Energy plunged 15 per cent, while Indian Energy Exchange dropped 10 per cent. Bank of Maharashtra settled 7 per cent down. India Cements, Hindustan Aeronautics and Paytm rose 6-7 per cent each, while Brightcom Group and Suzlon Energy settled 5 per cent higher, each.
 

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