Profit booking, coupled with negative global markets and lower crude oil prices, dragged the Indian equity markets lower on Friday.
Both the key equity indices, after starting off on a negative note, closed the day's trade with losses of nearly one per cent each.
The wider 51-scrip Nifty of the National Stock Exchange (NSE) edged down by 85.80 points or 0.96 per cent to 8,866.70 points.
The barometer 30-scrip sensitive index (Sensex) of the BSE, which opened at 29,062.90 points, closed at 28,797.25 points -- down 248.03 points or 0.85 per cent from the previous close at 29,045.28 points.
The Sensex touched a high of 29,062.90 points and a low of 28,755.08 points during the intra-day trade.
The BSE market breadth was tilted in favour of the bears -- with 1,626 declines and 1,136 advances.
On Thursday, both the key Indian indices registered new closing highs, prompted by value buying at lower levels.
The barometer index had edged up 118.92 points or 0.41 per cent to a new 17-month closing high at 29,045.28 points.
Similarly, the NSE Nifty rose by 34.55 points or 0.39 per cent to touch its new 18-month closing high at 8,952.50 points.
Initially on Friday, the benchmark indices opened in the red due to negative Asian markets.
Moreover, the global and domestic investors were disappointed after the the ECB (European Central Bank) decided that it will not extend the current bond buying program.
Besides, caution ahead of the release of key macro-economic data such as the factory output -- Index of Industrial Production (IIP) -- for July and inflation figures for August weighed heavy on the indices.
In addition, depreciation in the rupee's value dampened investors' sentiments.
The rupee weakened by 26 paise to 66.68 against a US dollar from its previous close of 66.42 to a greenback.
However, value buying at lower levels and healthy foreign funds flow aided the equity markets to pare their losses.
"Negative global markets due to ECB's decision not to inject more liquidity, profit booking and caution ahead of the key macro-economic data led the equity markets to end the day's trade in the red," Anand James, Chief Market Strategist at Geojit BNP Paribas Financial Services, told IANS.
"A weak rupee and lower global crude oil prices too eroded investors' risk taking appetite. However, value buying at lower levels arrested sharp falls in the equity markets."
According to Dhruv Desai, Director and Chief Operating Officer of Tradebulls, the CNX Nifty traded with bearish sentiments throughout the session on profit booking.
"Firm USD/INR futures prices pressurised the Nifty movement in intra-day session. Banking and pharma sector stocks traded with mixed sentiments, while IT sector stocks managed to hold the early gains throughout the session," Desai added.
"Power sector stocks traded with strong buying sentiments. Aviation stocks traded down on lack of buying support."
In terms of investments, provisional data with the exchanges showed that the foreign institutional investors (FIIs) sold stocks worth Rs 315.24 crore, whereas the domestic institutional investors (DIIs) divested scrip worth Rs 328.26 crore.
Sector-wise, the S&P BSE automobile index plunged by 343.41 points, followed by the banking index, which declined by 236.75 points, and the metal index fell by 181.89 points.
On the other hand, the S&P BSE oil and gas index surged by 102.45 points, the IT index rose by 42.18 points, and the energy index gained by 25.63 points.
Major Sensex gainers during Friday's trade were: ONGC, up 3.31 per cent at Rs 254.40; Gail, up 1.54 per cent at Rs 394.90; Wipro, up 1.49 per cent at Rs 480.65; Tata Consultancy Services (TCS), up 1.35 per cent at Rs 2,352.50; and Reliance Industries, up 1.11 per cent at Rs 1,043.70.
Major Sensex losers were: Axis Bank, down 2.54 per cent at Rs 613.20; ITC, down 2.49 per cent at Rs 258.70; Hindustan Unilever (HUL), down 2.24 per cent at Rs 930.15; Tata Steel, down 2.08 per cent at Rs 394.50; and Hero MotoCorp, down two per cent at Rs 3,623.80.
--IANS
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