Sensex, Nifty extend losses into 4th session; HDFC shares weigh

Equity benchmark indices Sensex and Nifty stayed on the back foot for the fourth straight session on Friday as investors offloaded healthcare, consumer durable and commodity stocks amid a weak trend in global markets.

Foreign fund outflows and heavy selling in HDFC Bank shares also hit investor sentiments, traders said.

After oscillating nearly 500 points between gains and losses during the day, the 30-share BSE Sensex declined 221.09 points or 0.33% to settle at 66,009.15. During the day, it hit a high of 66,445.47 and a low of 65,952.83.

The Nifty fell 68.10 points or 0.34% to end at 19,674.25.

In the early trade, the benchmark indices had climbed after global financial firm JP Morgan said it plans to include Indian government bonds (IGBs) or government securities (G-Secs) into its Emerging Market index from next year, a move that will bring down borrowing cost for the government.

On a weekly basis, the BSE benchmark fell 1,829.48 points or 2.69%, and the Nifty declined 518.1 points or 2.56%.

“Domestic markets closed on a sombre note as mixed cues from U.S. and Asian markets weakened domestic investors’ confidence. Nevertheless, PSU bank stocks outperformed as India’s inclusion in JP Morgan’s government bond index led to a decline in bond yields.

“…risk-averse sentiment prevailed due to the ongoing ascent of U.S. bond yields and concern over higher rates for a prolonged period,” said Vinod Nair, Head of Research at Geojit Financial Services.

Wipro was the biggest loser among Sensex firms, sliding 2.32%, followed by HDFC Bank, Power Grid, UltraTech Cement, ITC, ICICI Bank and Tata Motors.

IndusInd Bank, Maruti, State Bank of India, Mahindra & Mahindra, Asian Paints and Bajaj Finserv were among the gainers.

In the broader market, the BSE midcap gauge declined 0.14% and smallcap index gained marginally by 0.04%.

“Downward spiral continued in the markets despite recovery in other Asian peers, as investors booked profits for the 4th straight session after the recent upsurge.

“While Indian market valuations have become expensive, other bigger concerns like rising crude oil prices, firm U.S. Dollar index and treasury yields coupled with continuous FII selling have been denting the sentiment,” Amol Athawale, Vice President – Technical Research, Kotak Securities Ltd, said.

Among the indices, consumer durables fell by 0.84%, realty declined by 0.73%, commodities (0.62%) and oil & gas (0.45%).

Capital Goods, bankex, consumer discretionary and industrials were the gainers.

In Asian markets, Seoul and Tokyo settled in the negative territory while Shanghai and Hong Kong ended in the green.

“Global shares sagged, and U.S. yields climbed multi-year highs on Friday after a week packed with central bank meetings signalled that the U.S. Federal Reserve’s interest rates would stay higher for longer,” Deepak Jasani, Head of Retail Research, HDFC Securities, said.

European markets were trading mostly lower. The U.S. markets ended in negative territory on Thursday.

Foreign Institutional Investors (FIIs) offloaded equities worth Rs 3,007.36 crore on Thursday, according to exchange data. FPI’s were net sellers of Indian equities in this week.

Global oil benchmark Brent crude climbed 0.59% to $93.85 a barrel.

The BSE benchmark fell 570.60 points or 0.85% to settle at 66,230.24 on Thursday. The Nifty declined 159.05 points or 0.80% to end at 19,742.35.