After seeing fresh records and milestones during the week, it was an anti-climax ending for D-Street on Friday, with the Sensex ending over 150 points lower, while the Nifty giving up 11,450-mark. The 30-share index, which clinched 38,000 during the week, managed to end below that.
The losses were largely a courtesy of big fall in banking names, led by State Bank of India. The lender declared a loss of Rs 4,876 crore for the June quarter on the back of higher provisions as well as recognition of treasury losses. Investors were as such cautious ahead of the results announcement, as the stock fell 2 percent in the morning.
Apart from that, there was weakness visible among metals, pharma as well as energy names, while auto and FMCG names were in the green. IT stocks, too, witnessed a rally on the back of a weaker rupee. The Nifty Midcap index ended lower by over half a percent.
The market managed to snap its 5-day winning streak, but investors could make peace with the fact that the Nifty has held 11,400. For the week, Sensex was higher by 0.8 percent, while the Nifty rise 0.4 percent.
At the close of market hours, the Sensex ended down 155.14 points or 0.41% at 37869.23, while the Nifty was lower by 41.20 points or 0.36% at 11429.50. The market breadth is narrow as 1,040 shares advanced, against a decline of 1,658 shares, while 140 shares were unchanged.
M&M, TCS, Eicher Motors and BPCL were the top gainers, while SBI, Vedanta, and GAIL ended up being the top losers.
“Indian benchmark indices ended Friday’s session with losses tracking weak global cues. The Nifty Index ended lower by 0.4% to close at 11,430 levels. The broader markets underperformed the benchmark with BSE Midcap and BSE Smallcap ending the day with losses of 0.9% each,” Jayant Manglik, President of Religare Broking said in a statement.
Stocks in news:
The country’s largest bank State Bank of India (SBI) on Friday reported a net loss of Rs 4,875.85 crore for the quarter ended June as its provisions for bad loans rose by more than 70 percent year on year. The stock closed 3.8 percent lower.
Gail India has come out with robust numbers for the quarter ended June 2018 (Q1FY19). The company’s Q1 net profit has increased by 23 percent at Rs 1,259 crore on the back of strong revenue income and operating performance. The stock closed 3.4% lower.
Aluminium major, Hindalco, reported 43 percent rise in the net profit for June quarter at Rs 413.5 crore, against Rs 289.5 crore that the company reported last year. Its revenues grew 8.4 percent at Rs 10,593 crore against Rs 9,775 crore seen during the corresponding quarter of last year. The stock closed 2.2% higher.
Shares of Jet Airways touched 52-week low of Rs 261.60 on the BSE, as company deferred announcing its June quarter numbers on Thursday. The board of directors of the company, at its meeting held on August 9, deferred the matter of consideration of the unaudited financial results for the quarter ended June 30, 2018. The stock closed 8.3% lower.
Shares of multiplex operators soared after the Supreme Court stayed a Jammu & Kashmir High Court order allowing outside food to be taken in cinema halls. The order is limited only to the state of J&K. Inox Leisure rose 1.9% higher while PVR gained 2.6%.
Shares in Europe were lower as investors took cues from earnings, trade war issues between US and China along with diplomatic row involving Turkey. The Turkish lira slipped to an all-time low against US dollar. Stoxx 600 was down by nearly 1 percent. The European Central Bank (ECB) is worried over the impact of a weak lira on European banks.
Meanwhile, markets in Asia ended lower as US-China trade war uncertainty dominated negative cues. Nikkei 225 fell 1.33 percent, or 300.31 points, to close at 22,298.08.
Going forward, investors are likely to eye macro data along with trade war issues. “With headline index trading at record highs, some consolidation cannot be ruled out. Key macro data (WPI & CPI) scheduled next week would be keenly watched by the investors. We expect stock specific volatility to continue with more corporate earnings scheduled in the next 1-2 weeks. Further, market participants would keep an eye on global developments especially the US-China trade war, progress of monsoon, currency and crude oil price movement,” Manglik’s statement further added.