Investors lost Rs 2.33 lakh crore on across the board profit-booking after Sensex and Nifty suffered their worst fall in four weeks today. Market cap fell to Rs 195.43 lakh crore today falling from a record Rs 197.66 lakh crore in the previous session.
Benchmark indices, which hit record highs on first four trading days of this week, also followed bearish sentiment in global markets as a proposed US stimulus package failed to surprise.
While Sensex slumped 549 points or 1.11 per cent to 49,034, Nifty tumbled 161 points or 1.11 per cent to 14,433. However, Nifty rose for a third straight week and Sensex gained for an eleventh straight week.
During the week, Sensex gained 252 points or 0.51 per cent and Nifty rose 86 points or 0.60 per cent.
On Sensex, Tech Mahindra share was the top loser, falling 4.35%, followed by HCL Tech, ONGC, Asian Paints, UltraTech Cement, HDFC and HUL.
Only four components closed with gains on Sensex-Bharti Airtel, ITC, Bajaj Auto and Bajaj Finance, rising up to 3.84%.
However, 248 stocks hit 52 week highs against 35 falling to their 52 week lows.
Similarly, 324 stocks hit upper circuits against 239 falling to their lower circuit in volatile trade. Market breadth was negative with 2,001 stocks ending lower against 1,023 rising on BSE.
The rupee too snapped its three-session winning streak and ended 3 paise lower at 73.07 against the US dollar.
On the market outlook, Rusmik Oza, Executive Vice President, Head of Fundamental Research at Kotak Securities said, "Going forward US stimulus, earnings season and budget expectations could determine the market movement. We expect Nifty to trade with positive bias from here till Budget. The MSCI Emerging Market Index has broken the pre GFC peak of 1,345 seen in 2007. If it sustains above 1350 for one/two more weeks then it would confirm the break-out and go into a new zone. Any structural up move in the MSCI Emerging Markets Index could also have a positive impact on Indian markets."
On a sectoral basis, BSE oil and gas, IT, realty, capital goods, utilities, energy, power and consumer durables indices fell up to 2.43 per cent, while telecom rallied 3.68 per cent.
Nagaraj Shetti, Technical Research Analyst at HDFC Securities said, "The sharp decline of Friday seems to be a one-day drop in the market as per the symmetrical chart pattern of daily and we expect Nifty to show upside bounce to retest the new high of 14653 in the next week. On the flip side, a sharp follow-through weakness in the next 1-2 sessions is expected to negate this pattern. Immediate support is placed at 14,0350."
Global markets fell on Friday even as US President-elect Joe Biden unveiled his widely expected $1.9-trillion stimulus package as investors fretted over possible tax hikes and higher interest rates.
"Markets began circumspect amidst weak job data in the US even as Joe Biden unveiled details of the $1.9 trillion rescue package. Friday's afternoon trade saw profit taking in IT stocks despite the biggies putting out positive commentary with large deal wins as MCAP to GDP crossed 100 per cent, leading to volatility," said S Ranganathan, Head of Research at LKP Securities.
Germany's DAX lost 0.4% to 13,935.44 and the CAC 40 in Paris sank 0.7% to 5,639.81. In Britain, the FTSE 100 gave up 0.6% to 6,761.75. The future contracts for both the S&P 500 and Dow industrials were 0.3% lower.
Japan's Nikkei 225 slipped 0.6% to 28,519.18, while the Hang Seng in Hong Kong recovered to close 0.3% higher, at 28,573.86. In Australia, the S&P/ASX 200 was flat at 6,715.40. South Korea's Kospi skidded 2% to 3,085.90. The Shanghai Composite index was flat, at 3,566.38.
On Wall Street, the S&P 500 fell 0.4% to 3,795.54. The benchmark index was weighed down by losses in Apple, Microsoft and other huge tech companies.