Equity benchmark indices Sensex and Nifty declined on Friday, dragged down by heavy selling pressure in banking, financial and energy stocks amid mixed cues from global markets.
Shares of bank and NBFC firms fell after the Reserve Bank tightened norms for consumer credit as it asked them to assign a higher risk weight for unsecured personal loans, a move aimed at making the lenders more cautious about such advances.
The 30-share BSE Sensex declined 187.75 points or 0.28 per cent to settle at 65,794.73. During the day, it fell 342.74 points or 0.51 per cent to 65,639.74.
The Nifty skidded 33.40 points or 0.17 per cent to 19,731.80.
Among the Sensex firms, State Bank of India fell 3.64 per cent, followed by Axis Bank (3.03 per cent). Bajaj Finance, ICICI Bank, Bajaj Finserv, IndusInd Bank, Infosys, Kotak Mahindra Bank, Wipro, and Reliance Industries were among the other laggards.
On the other hand, Larsen & Toubro, Hindustan Unilever, Power Grid, Asian Paints, Nestle and Mahindra & Mahindra were the major gainers.
In Asian markets, Seoul and Hong Kong settled lower, while Tokyo and Shanghai ended in the green. European markets were trading with gains. The US markets ended on a mixed note on Thursday.
“The RBI’s action to raise risk weights for unsecured loans dampened banking stocks and caused a temporary disruption in the broader indices’ resurgence. Despite this, a positive undercurrent prevails, buoyed by the conclusion of a robust earnings season.
“Investors are awaiting eurozone inflation data later today. Sharp drop in oil prices and the moderation of US yield will help the market to sustain buoyancy in the short-term,” said Vinod Nair, Head of Research at Geojit Financial Services.
Global oil benchmark Brent crude climbed 0.77 per cent to USD 78.02 a barrel.
Foreign Institutional Investors (FIIs) were buyers on Thursday as they bought equities worth Rs 957.25 crore, according to exchange data.
The BSE benchmark climbed 306.55 points or 0.47 per cent to settle at 65,982.48 on Thursday. The Nifty gained 89.75 points or 0.46 per cent to 19,765.20.
Rupee edges 4 paise lower at 83.27 against US dollar
The rupee declined by 4 paise to 83.27 (provisional) against the US dollar on Friday as a firm greenback in the overseas markets and losses in domestic equities weighed on investor sentiment.
Fresh FII inflows and crude oil prices trading near four-month lows helped the rupee restrict losses, forex dealers said.
At the interbank foreign exchange market, the rupee opened flat at 83.23 against the US currency following overnight losses in crude oil prices. The local unit moved in a tight range of 83.23 to 83.28 in the day trade.
The currency finally closed lower by 4 paise at 83.27 against the dollar. It closed at 83.23 against the greenback on Thursday.
The rupee declined marginally as the dollar index remained within a range near 104.10, Jateen Trivedi, VP Research Analyst at LKP Securities, said.
“Broadly, the rupee has been moving within the range of 82.90-83.35, with the RBI interventions preventing it from falling below the 83.35 levels while facing resistance around 82.90-83.00,” Trivedi said.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, touched a high of 104.53 before edging lower by 0.11 per cent at 104.23 in afternoon trade.
Brent crude futures, the global oil benchmark, recovered from overnight losses to trade higher by 0.54 per cent at USD 77.84 per barrel. Indian basket oil futures were down 0.85 per cent at USD 83.09 per barrel.
Brent crude futures for December delivery plunged up to 5 per cent to a four-month low of USD 77.42 per barrel on Thursday as weak jobs data from the US led to worries about global oil demand.
On the domestic equity market front, the BSE Sensex declined by 187.75 points to settle at 65,794.73, while Nifty dropped 33.40 points to settle at 19,731.80 in a volatile trade.
According to exchange data, foreign institutional investors (FIIs) emerged as net buyers in the capital market on Thursday as they bought shares worth Rs 957.25 crore.