Key share indices extended losses for the third straight day on Friday, shrugging off firm global cues, on profit taking among Reliance Industries, financial and capital goods shares.
The Bombay Stock Exchange’s 30-share Sensex provisionally closed at 17,906 down 172 points or 0.95%. The National Stock Exchange’s 50-share S&P CNX Nifty provisionally closed at 5,425 down 58 points or 1.07%.
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Markets have extended the losses with Sensex and Nifty declining by nearly 1% each. Index heavyweights like HDFC, RIL and L&T have weighed over the local markets significantly. Moreover, rise in crude oil prices has also dampened the sentiments among local investors. Brent crude is trading above $120 per barrel.
By 1420 hrs, the Sensex was down 158 points at 17,919 and the 50-share Nifty slashed down 57 points at 5,426.
Among global markets, Asian markets ended on a marginally higher note. Nikkei, Strait Times, Hang Seng, Taiwan, Kospi and Shanghai Composite have fallen between 0.1-1%. However, European markets have turned mixed after positive beginning. CAC and DAX are trading positive whereas FTSE is marginally down.
Back home, HDFC is the top Sensex loser, down 4% after about 14.50 million shares of India's top mortgage lender, changed hands on the counter in block deals today. According to media reports, Citigroup Inc which holds around 145 million shares, or a 9.9% stake, in the company sold its entire stake at an average market price of Rs 670 per share via block deals.
Among banking shares, SBI, ICICI Bank and HDFC Bank have extended the losses, all slumping by over 2% on profit taking after recent gains on hopes of rate cut by the central bank as concerns over rising inflation eased.
From the capital goods segment, stocks like L&T and BHEL have plummeted between 1-3% after gains over the past few sessions.
Index heavyweight Reliance Industries has extended the initial losses, down by over 2%. ONGC has declined by nearly 2% after the stock gained post the government's announcement that it will divest stake in the exploration major through auction.
From the realty pack, DLF has dropped by almost 2%.
Auto shares like Hero MotoCorp and Tata Motors have slipped by nearly 1% each.
The broader indices maintain the weak trend with BSE Midcap and Smallcap indices declining by almost 1% each.
DB Realty has crashed by almost 6%, falling 23% from Wednesday’s intra-day high of Rs 102.50, after its partner in the telecom joint venture - Etisalat - said it would shut down the operations in India.
ABB has dipped 5% on reporting 11.3% quarter-on-quarter drop in order flow at Rs 22,093 crore for the quarter ended December 2011 (Q4). The Indian arm of Swiss automation and power firm had bagged orders worth of Rs 24,926 crore in Q3.
The market breadth in BSE remains dismal with 1,724 shares declining and 1,040 shares advancing.
