Sector-wise, BSE IT, Tech, Bankex, Finance and Oil & Gas fell up to 2.09 per cent, while Telecom posted gains.
Equity benchmark Sensex fell over 1,000 points below the 55,000 level on Friday, tracking deep losses in IT, finance, banking and energy stocks amid widespread selling in global markets. Traders said a weak rupee, rise in crude oil prices and continued foreign capital outflow weighed on the sentiment.
The 30-share BSE index ended 1,016.84 points or 1.84 per cent lower at 54,303.44. Similarly, the broader NSE Nifty fell 276.30 points or 1.68 per cent to 16,201.80.
Kotak Bank was the top laggard in the Sensex pack, falling nearly 4 per cent, followed by Bajaj Finance, HDFC twins, Reliance Industries, Wipro, Infosys, Tech Mahindra, Tata Steel and TCS. On the other hand, Asian Paints, UltraTech Cement, Dr Reddy’s, Titan and IndusInd Bank were among the gainers.
Sector-wise, BSE IT, Tech, Bankex, Finance and Oil & Gas fell up to 2.09 per cent, while Telecom posted gains.
According to rating agency Icra, operating profit margins of information technology companies may shrink by up to 1.50 per cent in the near future due to wage cost inflation due to high job losses in the over US$200 billion industry.
Among the broader markets, the BSE Midcap, Large-cap and Smallcap gauges fell up to 1.72 per cent.
Rupee at record low
On Friday, the rupee depreciated by 11 paise to end at a record low of 77.85 (provisional) against the US dollar.
After heavy selling in the US market, shares in Tokyo, Hong Kong and Seoul closed lower, while Shanghai settled in the green. Equities in Europe were witnessing heavy selling pressure in mid-session deals.
Meanwhile, international oil benchmark Brent crude climbed 0.45 per cent to $123.62 per barrel. India’s crude oil basket has hit a decade high of USD 121 a barrel, but retail selling prices of petrol and diesel remain stable.
As per data available from Petroleum Planning and Analysis Cell (PPAC) of the Oil Ministry, the Indian basket touched USD 121.28 on June 9, the same as it was seen in February/March 2012.
Foreign institutional investors (FIIs) remained net sellers in the capital market as they sold shares worth Rs 1,512.
64 crore on Thursday, according to exchange data.
Meanwhile, Fitch Ratings has downgraded India’s sovereign rating from ‘stable’ to ‘stable’ after two years, citing the risk of a slowdown in medium-term growth on a rapid economic recovery. Fitch Ratings kept the rating unchanged at ‘BBB-‘.
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