Share Market Update: Sensex, Nifty fall for third session in row; IT stocks drag

Market benchmarks surrendered early gains to end with modest losses Friday, led by selling in IT bluechips, as investors awaited fresh buying triggers amid frothy valuations.

The share market is likely to stay range-bound due to weak global cues. (File photo/ Getty)

Market benchmarks surrendered early gains to end with modest losses on Friday

BSE Sensex ended 18.17 points, or 0.05 per cent, lower at 38,963.26

NSE Nifty slipped 12.50 points, or 0.11 per cent, to close at 11,712.25

Share Market Update: Market benchmarks surrendered early gains to end with modest losses on Friday, led by selling in IT bluechips, as investors awaited fresh buying triggers amid frothy valuations. After trading on a positive note through the day, the BSE Sensex ended 18.17 points, or 0.05 per cent, lower at 38,963.26. In similar movement, the broader NSE Nifty slipped 12.50 points, or 0.11 per cent, to close at 11,712.25. During the holiday-truncated week, the Sensex fell 104.07 points or 0.26 per cent; while the Nifty shed 42.40 points, or 0.36 per cent. IT stocks came under pressure after tech giant Cognizant slashed its full-year revenue growth outlook. A strong rupee also weighed on the counters. The US-headquartered Cognizant, which has a significant portion of its employees based in India, revised its full-year 2019 revenue growth outlook to 3.6-5.1 per cent in constant currency terms, significantly less than 7-9 per cent projected just months ago. In the Sensex pack, losers included TCS, HUL, Tata Steel, HCL Tech, Infosys, Bajaj Finance, HDFC, IndusInd Bank, Asian Paints, ITC and Vedanta, shedding up to 3.70 per cent. HUL too ended in the red ahead of its quarterly results. On the other hand, Bharti Airtel, ICICI Bank, NTPC, Yes Bank, Tata Motors, ONGC, Bajaj Auto, M&M, Maruti, Hero MotoCorp and Kotak Bank rose up to 3.11 per cent. "Market started on a positive note supported by strong rupee and fall in oil prices. However, gains are capped due to the premium valuation. "Fall in 10-year yield led the bank index to outperform. The share market is likely to stay range-bound due to weak global cues while better quarter results may provide the opportunity to accumulate," said Vinod Nair, Head of Research, Geojit Financial Services. Sectorally, BSE IT, tech, healthcare and FMCG indices fell the most, dropping up to 1.91 per cent. However, telecom, realty, auto and the bankex rose up to 1.56 per cent. The broader BSE midcap and smallcap indices followed the benchmarks to end up to 0.31 per cent lower. Meanwhile, foreign institutional investors (FIIs) bought equity worth Rs 597.54 crore on Thursday, while domestic institutional investors (DIIs) sold shares to the tune of Rs 791.69 crore, provisional data available with stock exchanges showed. Elsewhere in Asia, Korea's Kospi and Hong Kong's Hang Seng ended on a mixed note, while other major bourses in China and Japan were shut for holidays. European equities started off on a firm footing.  The rupee, meanwhile, appreciated to 69.34 against the US dollar intra-day. Global oil benchmark Brent crude was trading 0.62 per cent lower at USD 70.31 per barrel.

Published at : 03 May 2019 06:25 PM (IST)

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