Sensex ends 256 points down; Nifty below 7,800-mark; Vedanta top loser

The domestic markets ended the day sharply lower in trade on Friday and posted a third straight weekly loss, weighed down by disappointing second-quarter earnings and foreign investor outflows, as funds continue to sell in anticipation of a potential US interest rate hike next month.

The S&P BSE Sensex settled the day 256.42 points lower at 25,610.53, while CNX Nifty ended below its crucial 7,800 level at 7,762.25, down 62.75 points.

Market breadth remained fairly negative with 23 of the 30 Sensex stocks ending the day in red.

Vedanta was the worst performer on the 30-share index and ended the day 4.2 per cent down.

Markets fell in line with sharp losses across Asia, after commodity prices slumped to fresh multi-year lows, on worries that slower growth may worsen a supply glut.

Foreign institutional investors have been net sellers of Indian equities for $273.87 million in November so far, data from the exchanges showed.

Analysts expect further near-term losses in India.

"Domestic earnings in second quarter were not encouraging and commentary for the third quarter (is) also not looking up. The continuing foreign outflows in anticipation of the Fed move will keep markets under pressure," said Daljeet Kohli, head of research of IndiaNivesh Securities.

Back home, data released by CSO on Thursday showed industrial production slackened to a four-month low of 3.6 per cent in September, which is lowest since 2.5 per cent rise in May this year, while retail inflation inched up to 5 per cent in October compared with 4.41 per cent in September this year and 4.62 per cent in October 2014.

Among Asian markets, China's Shanghai Composite ended the day 1.43 per cent down, Hong Kong's Hang Seng index was down 2.15 per cent, while Japan's Nikkei quoted 0.51 per cent lower at close.

Overnight, US stocks ended suffered its worst session in over a month as lower commodity prices weighed on energy and materials stocks and comments by a Federal Reserve policymaker hinted at an approaching interest-rate hike.

Lowdown on the markets today

02:10 pm

Sensex at 25,645.47, down 221.48 points

Nifty at 7,768.05, down 56.95 points

11:49 am

Sensex at 25,577.76, down 289.19 points

Nifty at 7,744, down 81 points

10:00 am

Sensex at 25,644.00, down 222.95 points

Nifty at 7,760.00, down 65.00 points

9:23 am

Sensex at 25,605.38, down 261.57 points

Nifty at 7,745.80, down 79.20 points