The Indian equity markets slipped on Friday as profit booking, negative global cues and a weak rupee weighed heavy on investors' sentiments.
The markets closed the day's trade marginally in the red, as heavy selling pressure was witnessed in capital goods, oil and gas, and banking stocks.
The wider 51-scrip Nifty of the National Stock Exchange (NSE) edged down by 14.70 points or 0.18 per cent, at 8,323.20 points.
The barometer 30-scrip sensitive index (Sensex) of the BSE, which opened at 27,292.20 points, closed at 27,126.90 points -- down 74.59 points or 0.27 per cent from the previous close at 27,201.49 points.
The Sensex touched a high of 27,294.82 points and a low of 27,034.14 points.
The BSE market breadth was tilted in favour of the bears -- with 1,551 declines and 1,161 advances.
On Thursday, the benchmark indices closed flat -- marginally in the green -- after a volatile trading session induced by profit booking.
Initially on Friday, the key indices opened on a lower note in sync with their Asian peers.
Besides, profit booking and a weak rupee dented investors' sentiments.
The Indian rupee ended flat -- marginally in the red. It weakened by three paise to close at 67.37 against a US dollar from its previous close of 67.40 to a greenback.
Further, investors' confidence was eroded by uncertainties ahead of key quarterly results. Infosys is expected to be the first bluechip firm to come out with its results on July 15. IndusInd Bank is expected to announce its quarterly numbers on Monday.
In addition, upcoming global event risks such as the release of US non-farm payrolls' data negatively influenced investors' sentiments.
The data assumes significance as a healthy jobs growth figure can quicken the start of the next rate-hike cycle.
A hike in the US interest rates can potentially lead FPIs (Foreign Portfolio Investors) away from emerging markets such as India.
However, value buying lifted prices from lower levels. Other positive cues such as prospects of more EPFO's (Employees Provident Fund Organisation's) funds being invested in equity markets, as well as government's plans to offload stake in SUUTIs (Specified Undertaking of Unit Trust of India) aided in the recovery.
Moreover, investors were seen upbeat over the healthy progress of the monsoon season.
"Profit booking, coupled with subdued Asian markets and uncertainties ahead of the quarterly earnings season weighed heavy on the equity markets," Anand James, Chief Market Strategist at Geojit BNP Paribas Financial Services, told IANS.
Dhruv Desai, Director and Chief Operating Officer of Tradebulls, said that Nifty opened with marginal downside on the back of bearish global cues.
"Volatility in USD/INR futures prices brought volatility in price movement of Nifty as well," Desai noted.
"IT (information technology), banking, sugar and pharma sector stocks faced resistance at higher levels due to profit booking."
According to Nitasha Shankar, Senior Vice President for Research with YES Securities, broader markets also gave up their winning streak and ended in the red.
"Midcap and smallcap indices ended marginally lower by 0.5 per cent each," Shankar said.
In terms of investments, the provisional data with exchanges showed that the foreign institutional investors (FIIs) bought stocks worth Rs 330.62 crore, and the domestic institutional investors (DIIs) divested scrip worth Rs 512.67 crore.
Sector-wise, the S&P BSE capital goods index plunged by 151.16 points, followed by the oil and gas index, which declined by 98.22 points; and the banking index fell by 61.92 points.
On the other hand, the S&P BSE automobile index surged by 124.32 points, followed by the healthcare index, which rose by 68.38 points; and the IT index gained by 6.91 points.
Major Sensex gainers during Friday's trade were: Asian Paints, up 2.38 per cent at Rs 1,010.90; Tata Motors, up 2.19 per cent at Rs 465.20; Hero MotoCorp, up 2.15 per cent at Rs 3,168; Cipla, up 1.27 per cent at Rs 519.75; and Dr Reddy's Lab, up 0.86 per cent at Rs 3,555.50.
Major Sensex losers were GAIL, down 2.37 per cent at Rs 375.45; Bharti Airtel, down 2.28 per cent at Rs 355; Adani Ports, down 1.59 per cent at Rs 207.05; Larsen and Toubro (L&T), down 1.43 per cent at Rs 1,531.75; and ONGC, down 1.35 per cent at Rs 223.60.
--IANS
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