The BSE Sensex and NSE Nifty fell around 0.90 per cent on Friday as fears of a China-led deceleration in global growth and escalating tension between South Korea and North Korea gripped markets.
Global stock markets tumbled after a survey showed Chinese factory activity contracted at their fastest pace since the depth of the global financial crisis in 2009. Sensex and Nifty closed 241.75 points and 72.80 points lower at 27,366 and 8,299.95, respectively, on Friday.
Among the sectoral indices on the Bombay Stock Exchange (BSE), the BSE Realty and BSE Auto index plunged 2.55 per cent and 2.07 per cent at 1,300.48 and 18,795.14, respectively. BSE IT index and BSE FMCG index gained 0.37 per cent and 0.11 per cent at 11,627.77 and 8,010.75, respectively.
Market breadth for the day remained negative and advances to declines ratio for Nifty stood at 10:39 for the day.
In the 50-share Nifty pack, Yes Bank (down 4.10 per cent), Bajaj Auto (down 3.80 per cent) and Vedanta (down 3.45 per cent) declined the most. On the other hand, HUL (up 1.66 per cent), Hindalco (up 1.53 per cent) and Ambuja Cements (up 1.12 per cent) remained top gainers on the performance chart of the index.
The rupee touched a low of 65.90 per dollar, the lowest since September 2013, tracking selloff in other Asian currencies.
China’s factory sector in August shrank at fastest pace seen in more than six years after dwindling domestic consumption demand and export demand numbers. The preliminary Caixin/Markit China manufacturing purchasing manager’s index (PMI) clocked 47.1 for the month of August, down from July’s final reading of 47.8.
Hiren Dhakan, associate fund manager, Bonanza Portfolio, said, “The poor PMI numbers suggested more trouble and spooked global markets.”
Gaurav Jain, director, Hem Securities, said, “Deteriorating global macro economic data and depreciating currency dented market sentiments on Friday.”
After correction of more than 2 per cent in US markets, Asian markets too added to weak global sentiments. Nikkei 225 closed 2.98 per cent lower at 19,435.83 while Shanghai and Hang Seng declined 4.27 per cent and 1.53 per cent, respectively, on Friday.
Markets through the day
3.22 pm: The BSE Realty index was down 2.53 per cent at 1,300. Oberoi Realty (down 4.90 per cent), Godrej Properties (down 5.94%) and DLF (down 4.16%) edged lower.
3.11 pm: Sensex was down 206 points at 27,402.
2.49 pm: Recovery in banking stocks and index heavyweights ITC and Reliance Industries supported benchmark indices in afternoon trade. The 30-share BSE Sensex was down 268 points at 27,340.
2.16 pm: Tata Motors declined over 3 per cent in the afternoon trade on Friday on BSE after the company announced that most of the Jaguar Land Rover vehicles recently shipped to Tianjin in China may have been damaged due to explosions at the Tianjin port. The scrip was trading 3.03 per cent lower at Rs 331.75. It also hit a new 52-week of Rs 328 on Friday.
The BSE Sensex was down 355 points at 27,252.
1.43 pm: Metal and mining stocks declined after weak Chinese manufacturing data. Share price of Vedanta and Nalco were down 4.82 per cent and 3.82 per cent, respectively. BSE Sensex was down 341 points at 27,266.
1.13 pm: Sensex was down 343.22 points at 27,264.60.Similarly, Nifty was down 104.60 points at 8,268.15
12.33 pm: Sensex was down 414 point at 27,193. Nifty was down 124 points at 8,249.
11.45 am: Tata Communications shares gained over 2 per cent in the morning trade on Friday on reports Google Inc and Amazon are in talks to buy the data centre business of the company in a deal expected to fetch about Rs 4,261.40 crore to Rs 4,589.20 crore.
11.33 am: Sensex was down 368 points at 27,239.
11 am: Depreciating rupee which fell sharply by 27 paise to trade at two-year low of 65.81 too weighed on market sentiments.
10.52 am: Sustained selling by funds amid weak trend on Asian bourses following overnight sell-off in Europe and US markets as concerns have mounted that China’s slowdown would drag on global growth. Sensex was down 410 points at 27,197. Nifty was down 133 points at 8,239.
10.07 am: The BSE Sensex was down 364 points at 27,243.
Infosys shares gained over 1 per cent in the early trade on Friday after the company on August 20 (post market hours) announced that it has launched Aikido, three enhanced service offerings in Design Thinking, Platforms and Knowledge-Based IT (KBIT).
9.38 am: The BSE Midcap index was down 174 points or 1.54 per cent at 11,143. The BSE Smallcap index was down 205 points or 1.76 per cent at 11,475. The decline in both these indices were higher than Sensex’s decline in percentage terms. Sensex was down 1.37 per cent at 27,221.
9.24 am: Sensex was down 466 points at 27,141. Shares of Bharti Airtel, Tata Motors and Vedanta were down over 3 per cent. NSE Nifty was down 135 points at 8,237.
Triggered by weak global cues, the BSE Sensex and NSE Nifty opened 167.72 points and 67.35 points lower at 27,440.10 and 8,305.40, respectively, on Friday.
(With inputs from Reuters)