Concerns over interest rate tightening by the Reserve Bank of India in its monetary policy coupled with weak cues from the Asian markets led the the country?s benchmark indices to break its winning streak. After nine consecutive weeks of gains, both Sensex and Nifty ended on the negative terrain for the current week. The Sensex and Nifty lost 1.91% and 1.85%, respectively, in the last one week.
Over the past few trading sessions, Indian markets were under pressure following intense selling and negative triggers from the global markets. However, foreign institutional investors (FII) continued with their buying. On Friday, FII bought stocks worth over Rs 240 crore, according to the provisional figures furnished by the Bombay Stock Exchange (BSE). In the current calendar year, FIIs have so far pumped in more than $5.42 billion, while in April, they have been net buyers at $ 1.05 billion in the Indian markets.
The 30-share Sensex of the BSE was down by 48.08 points to close the day at 17,591.18. The broader S&P CXN Nifty of the National Stock Exchange (NSE) lost 11 points to end the day at 5,262.60.
Anita Gandhi, head of institutional business at Arihant Capital markets, said: ?Upcoming events like the Reserve Bank of India?s monetary policy and corporate earnings have made investors little cautious. Also a technical correction is due after the sudden surge in the equity markets.?
Among BSE sectoral indices, power and PSU sectors ended in red while consumer durables and FMCG companies were the top performers of the day.
DD Sharma, vice-president (research-retail) at Anand Rathi Financial Services, said, ?If we look at the trading pattern of the previous three trading sessions, it looks like we are entering into a correction mode. Investors are staying away from the market on the fear of further fall. We think in the coming days, Nifty can come down to 5K levels.?
NSE?s cash segment reported the turnover of over Rs 12,600 crore, down by 18.16% against the previous session, while the derivatives segment reported the turnover of over Rs 66,200 crore, up by 2.68% compared to Thursday?s turnover.