Selling in selected IT, capital goods, realty, banks and healthcare stocks dragged benchmark index BSE Sensex down by 53.66 points to 27,782.25. The 50-share Nifty index also closed 19.65 points down at 8572.55. Among the 51 components in the Nifty index, Tata Motors DVR, Tata Motors, Bharti Infratel, Reliance Industries and Asian Paints gained 5.22 per cent, 4.05 per cent, 2.03 per cent, 1.48 per cent and 1.46 per cent, respectively. On the other hand, Wipro, HCL Technologies, Bank of Baroda, Adani Ports and Larsen & Toubro slid 2.78 per cent, 2.39 per cent, 2.13 per cent, 2.01 per cent and 1.85 per cent, respectively. Market sentiment also stood cautious as investors awaited Fed Chair Janet Yellen’s Jackson Hole speech later in the day for clues to the timing of the central bank’s next rate increase.
Among the sectoral indices on BSE, the BSE Consumer Durables index jumped the most — 1.46 per cent, followed by BSE Oil & Gas (up 0.70 per cent) and BSE Telecom (up 0.33 per cent). On the other hand, BSE IT index, Capital Goods index and Realty index slipped by 1.25 per cent, 1.24 per cent and 1.15 per cent, respectively.
Shares of credit rating firms such as Crisil, CARE and ICRA remained in limelight on hopes that rating firms may get more business due to the Reserve Bank of India’s (RBI’s) new norms on corporate bond markets. The central bank’ decision to open up the corporate bond market will lead to more trading and liquidity in the securities, forcing large companies to borrow more from the bond market instead of from banks, this means ratings agencies will get more issues to rate, as previously non-rated companies make a beeline.
Tata Motors shares gained despite the auto major reported 56.98% fall in its consolidated net profit at Rs 2260.40 crore for the quarter ended June 30, 2016 against Rs 5254.23 crore for the same quarter in the previous year. Shares of the company settled 2.01 per cent up at Rs 503.65.
Jayant Manglik, president, retail distribution, Religare Securities said, “Nifty traded under pressure on Friday as well and slipped marginally lower, tracking mixed cues. Though bias was initially positive, thanks to latest RBI’s announcements to boost fixed income and currency markets, but cautiousness ahead of speech of US Fed Chair not only capped the upside but also pushed the markets lower as session progressed. Participants are hopeful of some clue on interest rate trajectory in Janet Yellen’s speech tonight and we’ll see its reaction on our markets in early trade on Monday.”
Other Asian peers made a mixed closing on Friday, Nikkei closed lower by 1.18 pe rcent at 16360.71, while Shanghai and Hang Seng settled higher by 0.06 per cent and 0.41 per cent, respectively.