The Sensex and Nifty ended slightly higher on Friday, snapping a seven-session losing streak, led by consumer durables and capital goods stocks, but indexes still posted their biggest weekly fall in five as emerging markets remained under pressure.
The 30-share BSE index Sensex ended higher by 61.1 points or 0.24 per cent at 26,040.70. It posted a weekly fall of 1.69 per cent.
Similarly, the 50-share NSE index Nifty closed up 6.65 points or 0.08 per cent at 7,985.75. It was down 1.89 percent for the week.
Both indexes recorded their biggest weekly fall since the week ended on November 18.
Among BSE sectoral indices, capital goods index gained the most by 0.87 per cent, consumer durables 0.78 per cent, auto 0.28 per cent and oil & gas 0.26 per cent. On the other hand, realty index was down 1.06 per cent, healthcare 0.66 per cent, FMCG 0.51 per cent and IT 0.46 per cent.
Top five Sensex gainers were Cipla (+4.03%), Sun Pharma (+2.4%), Bajaj Auto (+2.39%), Maruti (+2.14%) and GAIL (+1.58%), while the major losers were Axis Bank (-2.23%), ONGC (-1.2%), ITC (-1.08%), M&M (-0.96%) and TCS (-0.85%).
FII selling
Donald Trump's victory in the US presidential election held last month has sparked outflows from emerging markets, with foreign institutional investors selling a net $413.55 million in Indian shares this month as of December 21.
“Lack of buying has been a major factor in the market's performances of late,” said Deven Choksey, managing director at KR Choksey Securities.
“We'll probably see a short change before the derivatives expiry next week but nothing substantial until the impact of demonetisation (India's action to ban higher-value banknotes) is clearer and the annual budget is announced.”
Indian Prime Minister Narendra Modi scrapped 500-rupee and 1,000-rupee banknotes on November 8 in a bid to flush out cash earned through illegal activities, or earned legally but never disclosed to the taxman.
A report by SMC Global said: "Asian stocks stepped back in subdued trade today as Wall Street took a breather from its relentless rise since the US election, while the dollar hovered below its 14-year high set earlier this week. Overnight, US equities posted their first back-to-back daily declines of the month in light trading as investors took time out ahead of the Christmas weekend. Economic activity in the US increased by more than previously estimated in the third quarter, the Commerce Department revealed in a report. The Commerce Department said gross domestic product climbed by 3.5 per cent in the third quarter, reflecting an upward revision from the previously reported 3.2 per cent increase. Economists had been expecting the report to show a more modest upward revision to the pace of GDP growth to 3.3 per cent."