The market lost nearly a percent on Friday with the Nifty closing below 8900 level as investors opted for profit booking after a 4.5 percent rally from last week and turned cautious ahead of July factory data.
Weak global cues also caused some selling pressure on disappointment from the ECB and on caution after the North Korea claimed its fifth nuclear test.
The 30-share BSE Sensex closed below psychological 29000 level, down 248.03 points or 0.85 percent at 28797.25. The 50-share NSE Nifty fell 85.80 points or 0.96 percent to 8866.70, dragged by banking & financials, FMCG, infra and auto stocks.
The broader markets also lost ground with the Nifty Midcap shedding 0.6 percent on weak breadth.
“It’s usual to see a pause or consolidation around the record high. But, we believe it’ll be over soon and Nifty will resume its upward momentum,” Jayant Manglik of Religare Securities said.
No major event is lined up on domestic front in the near term so he suggested traders to keep a close watch on the global front for further cues.
Equity benchmarks continued uptrend for the second consecutive week, rising 0.9 percent on the Sensex (and 0.6 percent on the Nifty) in addition to 2.7 percent rally in previous week on consistent inflow of foreign money. Nifty PSU Bank index surged 5 percent on hopes of treasury gains benefit due to fall in yields on government bonds while IT index lost 2 percent after TCS revised BFSI outlook.
Asian markets ended mostly lower after North Korea claimed its fifth nuclear test and amid disappointment following the European Central Bank’s policy decision. European stocks were marginally lower, at the time of writing this article.
ITC, HDFC, Tata Motors, Axis Bank, L&T, SBI and HUL were leading contributors to Sensex’s fall whereas ONGC was the biggest gainer, up 3 percent followed by Reliance Industries and GAIL.
Technology stocks except Infosys rebounded after yesterday’s sell-off. Nifty IT index gained 0.5 percent as TCS was up 1.2 percent. Wipro snapped 5-day losing streak, closing 1.6 percent higher.
Yes Bank shed 4 percent after the management deferred the USD 1 billion QIP issue.
IDBI Bank gained 5 percent after a media report indicated that Asian Development Bank is in talks with government to buy 10-15 percent stake in public sector lender. Kaya was up 6.6 percent as its Middle East subsidiary has signed an agreement to acquire 75 percent stake in Sharjah-based company Minal Medical.