Domestic equity barometer Sensex fell for the third consecutive session on Friday, mirroring similar trends in global markets.
“Other than the weak global sentiment, the liquidity crisis in the NBFC sector and reports of defaults and corporate mismanagements are keeping the market down,” said Rajnath Yadav, Senior Research Analyst for Fundamental Research at Choice Broking.
He said the market is correcting because of high valuations. The momentum may change after the Budget.
Rupee’s weakness against the US dollar also influenced market mood. The domestic unit fell by 34 paise intraday against the greenback.
Sensex ended 289 points, or 0.73 per cent, down at 39,452, while Nifty finished 91 points lower at 11,823. During the week, Sensex and Nifty shed 0.41 per cent each.
Here is a lowdown on the key highlights of Friday’s session:
Investors lose Rs 1.16 lakh crore
Friday’s fall in stocks dragged overall market capitalisation of BSE-listed firms to Rs 1,52,09,588 crore from Rs 1,53,25,806.16 crore on Thursday, making investors poorer by Rs 1.16 lakh crore in a day. In last three sessions, investors have lost over Rs 2 lakh crore.
276 stocks plumb 52-week lows
As many as 276 stocks, including Yes Bank, DHFL, HEG, Ceat, Glenmark Pharmaceuticals, Lakshmi Machine Works and Monsanto India, hit 52-week lows on BSE while 38 stocks, including Bajaj Finance, Manappuram Finance, Titan Company, Wipro and PI Industries hit 52-week highs.
231 stocks hit lower circuits
Manpasand Beverages, Reliance Communications, Windsor Machines, Eurotex Industries & Exports, Unitech and Eros International Media were among the 231 stocks that hit lower circuits on BSE.
Ambuja, Cipla below 200 DMAs
Ambuja Cements, Torrent Power, Cipla, DLF, Granules India, NHPC and M&M Financial Services were among the stocks that witnessed negative breakouts and slipped below their 200-DMAs. On the other hand, Cummins India, Visesh Infotechnics and Bajaj Electricals were among the stocks that traded above 200 DMAs.
144 stocks signal fall
Momentum indicator moving average convergence divergence, or MACD, showed bearish crossovers on 144 counters on BSE, hinting at the possibility that these stocks may fall in the coming sessions. Among the stocks were Yes Bank, Tata Motors, Reliance Industries, Aurobindo Pharma, Axis Bank and Coal India. On the other hand, Gufic BioSciences, Syschem (India), PI Industries, Pacific Industri and Eris Lifesciences were among 35 stocks that saw bullish crossovers.
Yes Bank at five-year low
Shares of Yes Bank closed at Rs 115.35, down 1.58 per cent, near its five-year low. With this, the stock extended losses into the third consecutive session, losing 17 per cent. Bloomberg data showed about 18.2 lakh shares of the private lender changed hands in a block deal on Friday, whose buyers and sellers were not known immediately.
RCap, Reliance Home Finance extend losses
Shares of Reliance Capital fell 9.30 per cent to Rs 76.55 while those of Reliance Home Finance declined 4.01 per cent to Rs 14.35, extending their losing streak into the third consecutive session. Media reports suggested that Sebi and the Ministry of Corporate Affairs are looking into the sudden resignation of PwC as auditor of both companies and have asked stock exchanges to collect necessary information, including trade details and statements made by the three entities.
Jet plunges to all-time low
Shares of Jet Airways tanked over 13 per cent to hit an all-time low of Rs 79.65 after reports that DGCA has cancelled critical authorisations to Jet Airways’ engineering department. However, the stock pared losses later in the day to close at Rs 82.05, down 10.77 per cent.
Adani Gas shares rise 3%
Shares of Adani Gas rose 3.20 per cent to Rs 173.95 after reports that French energy giant Total SA is likely to buy a 30 per cent stake in the company for upwards of Rs 5,500 crore.
Gruh Finance falls over 5%
Shares of Gruh Finance closed 5.40 per cent down at Rs 291.85 as mortgage lender HDFC on Friday sold over 4.22 per cent stake in its subsidiary firm, which is proposed to be amalgamated with Bandhan Bank for Rs 899.43 crore.
Source: Economic Times