Equity benchmark indices lost ground for the fifth consecutive day on Friday as weak domestic corporate numbers along with global negativity on account of geo-political tensions dampened investor sentiment.
The 30-share Sensex lost 317.74 points or 1.01% to close at 31,213.59. The benchmark has lost 1,112 points in the last five sessions and is now almost 1,500 points below its all-time high of 32,686.48, touched during intra-day trading on August 2.
The broader Nifty also lost 109.45 points, or 1.11%, to close at 9,710.8. The India VIX gained 10.19% to close at 15.19. In the last five trading sessions, India VIX has gained more than 33% moving from 11.39 to 15.19.
Rising volatility
India VIX is looked upon as a barometer for near-term volatility and a rise implies investors expect a rise in volatility.
“VIX soared over 15 for the first time in six months, as anxiety prevailed over the aggravating tensions between the U.S. and North Korea, and investors were largely cautious ahead of the weekend,” said Anand James, chief market strategist, Geojit Financial Services.
SBI was the worst performer in the Sensex pack, shedding 5.36% to close at ₹280.65. On May 19, the stock had touched its 52-week high of ₹315.
M&M, Reliance Industries, L&T, NTPC and ONGC each lost in excess of 2% on Friday.
The BSE Midcap and BSE Smallcap indices that had registered heavy losses in the past three sessions due to regulatory action against shell companies, managed to stem the loss to 0.25% each on Friday.