Markets pause record run

Stocks took a break after four back-to-back record-setting sessions as the benchmark BSE Sensex on Friday hit an all-time high, only to lose its way to end with a paltry loss. 

The broader NSE Nifty retreated after breaching the 9,900-mark for the first time ever.

On a weekly basis, the Sensex rose 660.12 points, or 2.1 per cent, and the Nifty 220.55 points, or 2.3 per cent, mainly driven by the successful roll-out of the goods and services tax and consumer price inflation and wholesale price inflation staying soft, giving the Reserve Bank more headroom to snip policy rate at its meeting next month. 

This is the biggest weekly gain for the indices since mid-March.

The Sensex closed at 32,020.75, down 16.63 points, or 0.05 per cent. The index scaled 32,109.75 on Friday to breach its previous all-time intra-day high of 32,091.52 hit on Thursday. 

The Nifty index finished lower by 5.35 points, or 0.05 per cent, to close at 9,886.35. Intra-day, it went past the 9,900-mark to hit a fresh lifetime high of 9,913.30, crossing its previous record 9,897.25 on Thursday.

The Nifty has rallied 225.90 points, or 2.33 per cent, in four straight days of gains.

Nervousness played on investors’ minds following muted earnings by the country’s largest software exporter Tata Consultancy Services as they took profit in recent blue-chip gainers.

“The quarterly earnings growth may not match the current premium valuation due to a tepid start of the result season, while investors giving more weight to the prevailing positive macros will help maintain a positive vibe in the market,” said Vinod Nair, head of research at Geojit Financial Services.

Initial gains dried up following the emergence of profit-booking at record levels.

Domestic institutional investors bought shares worth a net Rs 279.13 crore, while foreign portfolio investors sold worth a net Rs 59.15 crore on Friday, provisional data showed.

Software services exporter Infosys fell 0.44 per cent even as the company reported a 1.3 per cent growth in its June-quarter consolidated net profit. Tata Consultancy Services, however, fell the most by 1.85 per cent after the company had reported a 5.9 per cent decline in its net profit. Wipro, Tata Motors, Coal India and Tata Steel were the big losers, declining by up to 1.97 per cent.

Globally, most Asian stocks ended higher and European shares were mixed in their early deals following another record closing in the US markets on Thursday. US Federal Reserve chief Janet Yellen had indicated a softer approach to raising interest rates in her Congress testimony.

Back home, the BSE IT index suffered the most by falling 0.95 per cent, followed by technology, realty and capital goods.

The broader markets remained mixed.