Mumbai: The BSE Sensex and NSE Nifty fell 0.7 per cent at close on Friday due to fall in global markets on Greece woes and disappointing industrial output data for March. The market made an attempt in afternoon trade to turn positive but failed to sustain that recovery. Equity benchmarks closed lower for the fourth consecutive session.
The BSE benchmark declined 127.07 points or 0.77 per cent, to close at 16,292.98 and the NSE benchmark was down 36.80 points or 0.74 per cent to 4,928.90.
Vikas Khemani, president and head wholesale capital markets, Edelweiss Securities tells CNBC-TV18 that domestic and international macro economic factors are the headwinds which are affecting market performance. He says that unless these issues are not addressed soon, equities as an asset class will continue to take a beating.
India's industrial output unexpectedly contracted 3.5 per cent in March as against 4.1 per cent in February. Analysts had expected output to grow 1.5 per cent. Capital goods, mining and manufacturing sectors too came in negative.
Saurabh Mukherjea, Head of Equities at Ambit Capital said the IIP numbers were shockers. "The rupee remains weak, FII sentiment for India is weak and this sort of macro data obviously exacerbates the problem," he added.
Global markets too were under pressure after widening US trade deficit and JP Morgan's surprised trading loss of USD 2 billion. US trade deficit widened to USD 51.8 billion as against USD 45.4 billion MoM while expectations at USD 49.5 billion.
Markets globally stayed cautious ahead of further political developments in Greece. European markets were down 0.2-0.7 per cent and Asian markets dropped 0.6-1.4 per cent.
Back home, the BSE Sensex and NSE Nifty tanked over 3 per cent during the week, continuing fall for the third consecutive week. In three weeks, both benchmarks were down over 6 per cent.
Cigarette major ITC slipped for the second consecutive session, losing 2 per cent on profit booking. Engineering and construction major Larsen & Toubro was down 1.5 per cent while state-owned BHEL gained 0.8 per cent.
Private sector lender HDFC Bank declined over 1 per cent whereas rival State Bank of India rose 0.5 per cent. Software services providers Infosys and Wipro were down 1.6 per cent each.
State-owned oil & gas producer ONGC dropped nearly 2 per cent while Reliance Industries moved up 0.4 per cent. Shares of private power producer Tata Power topped the selling list, losing 5 per cent.
Healthcare sector (a defensive sector) too took huge beating today. Ranbaxy Labs, Sun Pharma and Dr Reddy's Labs (lower than expected profit in Q4) fell 2-4 per cent.
Top car maker Maruti Suzuki and utility vehicle manufacturer M&M lost 2 per cent and 1 per cent, respectively. However, Tata Motors and Bajaj Auto rallied 2.7 per cent and 3.5 per cent, respectively.
The broader markets were down 0.8 per cent as about two shares declined for every shares gaining on the BSE.
In the second line shares, JSW Steel fell 5 per cent as the Supreme court ordered CBI inquiry against the company in mining case.
Sintex Industries hit 52-week low today and fell nearly 4 per cent at close after its net profit fell 46 per cent YoY to Rs 91 crore for the fourth quarter of FY12.
Chettinad Cement (company will consider delisting proposal on May 15) and A2Z Maintenance were locked at 20 per cent upper circuit.
SKS Microfinance shot up 10.6 per cent after cabinet cleared Microfinance Bill yesterday, overriding state legislations on microfinance institutions.
Jubilant Foodworks rallied nearly 8 per cent after CLSA upgraded the stock.