Indices fall from 18-month highs

Markets closed in the red on Friday after investors booked profits, following weakness in the regional equity markets over reports of a nuclear test in North Korea and amid uncertainty over European C

Indian stock markets closed in the red on Friday, after investors booked profits following weakness in the regional equity markets over reports of a nuclear test in North Korea and amid uncertainty over the European Central Bank’s (ECB) future policy steps.
 

The benchmark Sensex lost 248.03 points or 0.85 per cent to close at 28,797.25 while the Nifty declined 85.80 points or 0.96 per cent to close at 8,866.70. The decline was also evident in the broader markets as the midcap index and smallcap index closed 0.99 per cent and 0.47 per cent lower. On Thursday, the Sensex and the Nifty had clocked fresh 18-month highs, while the broader indices had climbed to record highs.
 

 

Asian markets fell after North Korea said it had conducted its fifth nuclear test, hours after seismic monitors detected a blast near the reclusive state’s nuclear test site.
 

“Asian and European markets edged lower as well after the ECB decided not to extend the deadline of its bond-buying programme at the conclusion of its monetary policy meeting on Thursday. Additionally, reports of an earthquake in North Korea, possibly due to an explosion from a nuclear test in that nation, weighed on sentiment, making market participants jittery,” said Shreyash Devalkar, fund manager-equities, BNP Paribas Mutual Fund.
 

Auto and metal shares were among the biggest losers during the session, as their sectoral indices lost 1.48 per cent and 1.77 per cent, respectively. Among the Sensex companies, Hero Motocorp, Tata Motors, Hindustan Unilever, ITC and Axis Bank were the biggest losers.
 

Shares of YES Bank fell another four per cent on Friday, extending their three-day fall to 12 per cent. The lender on Thursday deferred its $1 billion fund-raising plan through a qualified institutional placement.
 

YES Bank shares closed at Rs 1,277.25 apiece on the BSE. Deutsche Bank downgraded the scrip to ‘sell’ on Friday, on the back of reduced return on equity estimates.
 

“We expect a slowdown in non-interest income growth due to pressure on financial markets-related income. YES Bank is heavily leveraged to financial markets income defined as treasury sales plus financial advisory, which contributes seven per cent of overall non-interest income. The current sluggishness in capital markets, coupled with a slowdown in forex derivatives sales, is expected to put pressure on the bottomline for YES Bank,” Deutsche said in a note to investors.
 

Shares of Steel Authority of India (SAIL) slumped the most in four months, after the country’s top producer reported a fifth quarterly loss, as a global glut continued to impact prices. SAIL scrips closed at Rs 50.65 apiece on the BSE, a decline of Rs 3.05 or 5.68 per cent, compared to the previous closing.
 

Shares of Tata Consultancy Services (TCS) rebounded marginally on Friday, after witnessing the highest single session fall during the previous session. TCS shares closed at Rs 2,352.5 apiece, Rs 31.35 or 1.35 per cent higher than the previous closing.