Stock Market Extends Loss: Sensex Sheds 366 Points, Nifty Settles Below 19,450; PSU Banks Gain

Stock update today: On the 30-share Sensex platform, IndusInd Bank, NTPC, Sun Pharma, Asian Paints, HUL, JSW Steel were among the losers

The two key equity benchmarks, Sensex and Nifty, on Friday extended their losses for the second day as investor sentiment got dented ahead of the key inflation data. The S&P BSE Sensex closed near the days’ lows of the day, down 366 points at 65,322. On the other hand, the NSE Nifty settled at 19,428, down 115 points.

On the 30-share Sensex platform, IndusInd Bank, NTPC, Sun Pharma, Asian Paints, HUL, JSW Steel were among the losers. On the flip side, HCL, PowerGrid, Titan, Reliance, UltraCemco, Tata Steel emerged gainers. HCL rallied 3 per cent on inking $2.1 billion deal with Verizon.

In the broader markets, the Nifty Midcap index slipped 0.5 per cent, while the SmallCap was down 0.2 per cent.

Among sectors, the Nifty PSU Bank index was the sole gainer, went up by 1.2 per cent. Pharma index down 1 per cent, while bank, auto, FMCG, metal and oil & gas fell 0.5 per cent each.

In the previous session on Thursday, the S&P BSE Sensex plunged 308 points lower at 65,688, while the NSE Nifty50 closed with a loss of 89 points at 19,543.

"The domestic market continued to experience selling pressure, with banking stocks extending their decline in reaction to the RBI's liquidity absorption measures," said Vinod Nair, Head of Research at Geojit Financial Services. "The escalating concerns about inflation further weighed on domestic market sentiments. Despite the US CPI coming in lower-than-expected and the UK GDP beating estimates, global sentiment remained unfavourable," he added.

In Asian markets, Seoul, Shanghai, and Hong Kong ended lower. European markets were trading in negative territory. The US markets ended with gains on Thursday.

Foreign institutional investors (FIIs) were buyers on Thursday as they bought equities worth Rs 331.22 crore, according to exchange data.

Global oil benchmark Brent crude declined 0.57 per cent to $85.91 a barrel.

Meanwhile, the rupee depreciated by 19 paise to settle at 82.85 (provisional) against the US dollar on Friday amid weak sentiment in the equity markets and a strong dollar against major rivals overseas. Foreign fund inflows and softening crude prices, however, supported the Indian currency even as investors were awaiting India's industrial output number, to be released later in the day, said analysts.

At the interbank foreign exchange market, the local unit opened at 82.75 against the US dollar. It touched the peak of 82.73 and hit the lowest level of 82.87 during intra-day trade before settling at 82.85 (provisional) against the greenback, 19 paise lower from its previous close.