RTTNews - The Indian market fell sharply for a second day in a row on Friday, as worries that the recent rally outpaced fundamentals led to extensive profit taking amid caution ahead of the looming U.S. jobs report, due later in the day.
Concerns about a below-normal monsoon also weighed on sentiment ahead of the weekend. According to the Indian Meteorological Department (IMD), India's monsoon rains were 64 percent below normal in the week ended August 5. Weekly rainfall was scanty in 23 areas, deficient in 4 zones, while only 2 regions received excess rains
Meanwhile, according to the data available on the NSE website, the IPO of NHPC received overwhelming response on the first day of opening, subscribing over 3 times till 3.00pm IST.
The BSE Sensex ended near the day's low at 15,160, down 354 points or 2.28% and the S&P CNX Nifty fell 104 points or 2.27% to 4,481.
The BSE small-cap index shed 1.92% and the mid-cap index moved down 2.27%. On the BSE, losers outnumbered gainers by 1915 to 749 , with 82 stocks closing unchanged.
Consumer durable and auto stocks fell the most on concerns about a contraction in rural demand, followed by realty, banking, power, capital goods, FMCG and metal stocks. IT, healthcare and public sector stocks outperformed the broader market with modest losses.
Stock-wise, Reliance Communication(down 5.79%), Mahindra & Mahindra(down 5.56%), Jaiprakash Associates(down 5.46%), Maruti Suzuki(down 5.33%), Tata Power(down 4.78%), BHEL(down 4.11%), Bharti Airtel(down 3.88%) and ICICI Bank(down 3.62%) were the top losers.
On the other hand, NTPC, Tata Steel and Wipro bucked the declining trend to end with modest gains.
The finance minister intends to take an urgent decision on 3G auction without further delay, reports claimed. Reliance Communication plunged 5.79%, while Idea Cellular, Tata Teleservices and Bharti Airtel fell over 4% each. Bharti Airtel has reportedly sought a $2 billion loan from the State Bank of India to fund a possible merger with South Africa's MTN Group.
Shipping stocks tumbled on the back of a 5 percent fall in the Baltic Exchange's main sea freight index.
GE Shipping tumbled 4.41%, Mercator Lines slumped 6.21%, Essar Shipping plunged 7.38% and Shipping Corporation of India fell 4.35%.
Raymond rose 1.06% and Welspun India was locked at the 5% upper circuit limit after the government promised to release Rs.2,546 crore under the Technology Upgradation Fund Scheme.
Shree Renuka Sugars will buy a 5 percent stake in NCDEX from Goldman Sachs and ICE, reports suggest. The stock ended down 2.27%. Otherwise, sugar stocks closed mostly higher after ICE benchmark front-month raw sugar futures spurted to a 28-year high overnight.
Select public sector stocks, which include BPCL,HPCL, GAIL, IOC, NTPC and BEML closed firm after state-run NHPC, which opened for subscription today, received strong response from funds and retail investors.
NMDC ended down 1.32% amid reports that it aims to complete the merger of Sponge Iron India with itself in the next three months.
Aurobindo Pharma slipped 0.19% despite receiving the final approval to sell carisoprodol tablets in the U.S. from the country's drug regulator USFDA. Larsen & Toubro eased 1.40% despite reports that it is sharpening focus on the railways sector.
Aditya Birla Nuvo fell 2.12% on reports that it plans to deploy the surplus cash generated by its manufacturing businesses to nurture the growing new-generation businesses.
Elsewhere, Japanese and South Korean stocks rose but China, Australia and Hong Kong markets ended down on weekend profit taking. European stocks fell in early trading, led by banks after RBS posted a first-half loss and U.S. stock index futures point towards a negative opening on Wall Street Friday morning.
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