The Sensex and Nifty plunged nearly one per cent on Friday, tracking weak regional equity markets, as investors booked profits following reports of a nuclear test in North Korea and uncertainty over the European Central Bank's (ECB) future policy steps.
North Korea announced on Friday it had conducted its fifth nuclear test, hours after seismic monitors detected a blast near the secretive country’s nuclear test site.
Market sentiment was also influenced by investors treading cautiously ahead of July IIP data due to be released today.
The benchmark BSE index ended 248.03 points or 0.85 per cent lower at 28,797.25, but posted a weekly gain of 0.93 per cent.
The broader NSE index closed down 85.8 points or 0.96 per cent at 8,866.70, but recorded a gain of 1.62 per cent for the week.
Among BSE sectoral indices, metal index fell the most by 1.77 per cent, FMCG 1.76 per cent, auto 1.48 per cent and consumer durables 1.2 per cent. On the other hand, oil & gas index was up 0.92 per cent, IT 0.41 per cent, realty 0.34 per cent and TECk 0.1 per cent.
Top five Sensex gainers were ONGC (+3.31%), GAIL (+1.54%), Wipro (+1.49%), TCS (+1.35%) and Reliance (+1.11%), while the major losers were Axis Bank (-2.54%), ITC (-2.49%), HUL (-2.24%), Tata Steel (-2.08%) and Hero MotoCorp (-2.00%).
Global markets
European stocks fell and bond yields rose on Friday, driven by German trade figures that cast doubt on the strength of the euro zone’s largest economy and lingering disappointment after the European Central Bank’s policy meeting the previous day.
Asian markets fell after North Korea said it had conducted its fifth nuclear test, hours after seismic monitors detected a blast near the reclusive state's nuclear test site.
Global market sentiment took a hit after ECB President Mario Draghi had said on Thursday that the central bank was looking at options to continue its money-printing programme, but maintained the March end-date for asset purchases.
Investors back home also booked profits after shares closed at their highest in 18 months on Thursday as foreign institutional investors bought shares worth $6.43 billion so far this year.
“North Korea news is having some bit of implication on our markets but its not causing any immediate selloff. Given the higher levels at which Indian markets were trading, it was mouth-watering to take some money off the table,” said Gaurang Shah, vice president, Geojit BNP Paribas Financial Services.