ETMarkets.comOut of tune with the positive global trend, domestic equities ended lower on Friday due to profit booking, as investors preferred to lighten positions ahead of the weekend.
Slipping below the support level of 18,500 points, the Nifty 50 settled 0.6% down at 18,496. The BSE Sensex closed 0.6% lower at 62,181 points.
Dragged by the underperforming IT stocks, benchmark indices registered weekly losses for the 1st time in 2 weeks, shedding over 1% each.
Meanwhile, equities in other Asian markets ended mostly higher as the dollar retreated and investors drew comfort from China’s move to ease Covid-19 restrictions across the country.
The fall in domestic equities was led by the information technology pack, the second most influential sectoral group on the Nifty, after a profit warning by sector major soured the mood.
Shares of HCL Technologies slumped 7% to Rs 1,027.50. They were the worst hit on Nifty 50 after the company said revenue growth in the current financial year will be at the lower end of its guided range of 13.5-14.5%.
The warning comes just two months after the software major had raised the full-year growth guidance, citing a strong deal pipeline.
This had an impact on the entire pack, with , , , and shedding more than 1-3%.
"Today's downfall in the domestic market was sparked by IT stocks extending their losses after warning of a potential slowdown in business on global recession fears. This was further aggravated by banks losing their grip as PSBs suffered heavy sell-offs,” said Vinod Nair, head of research at Geojit Financial Services.
Public sector banks, which were the darlings of Dalal Street, succumbed to profit booking after the recent gains. The Nifty PSU Bank index fell 1.8%, with Bank of Maharashtra, Bank of India, Union Bank of India, and Indian Bank declining by 5-7%.
An outlier with the PSB pack was State Bank of India, which gained about 1%. Apart from SBI, gains in private bank names like HDFC Bank and IndusInd Bank helped Nifty Bank not only end positive but also hit a lifetime high intraday. The index ended 0.1% higher and hit a record high of 43,853 points intraday.
More to come
Slipping below the support level of 18,500 points, the Nifty 50 settled 0.6% down at 18,496. The BSE Sensex closed 0.6% lower at 62,181 points.
Dragged by the underperforming IT stocks, benchmark indices registered weekly losses for the 1st time in 2 weeks, shedding over 1% each.
Meanwhile, equities in other Asian markets ended mostly higher as the dollar retreated and investors drew comfort from China’s move to ease Covid-19 restrictions across the country.
The fall in domestic equities was led by the information technology pack, the second most influential sectoral group on the Nifty, after a profit warning by sector major soured the mood.
Shares of HCL Technologies slumped 7% to Rs 1,027.50. They were the worst hit on Nifty 50 after the company said revenue growth in the current financial year will be at the lower end of its guided range of 13.5-14.5%.
The warning comes just two months after the software major had raised the full-year growth guidance, citing a strong deal pipeline.
This had an impact on the entire pack, with , , , and shedding more than 1-3%.
"Today's downfall in the domestic market was sparked by IT stocks extending their losses after warning of a potential slowdown in business on global recession fears. This was further aggravated by banks losing their grip as PSBs suffered heavy sell-offs,” said Vinod Nair, head of research at Geojit Financial Services.
Public sector banks, which were the darlings of Dalal Street, succumbed to profit booking after the recent gains. The Nifty PSU Bank index fell 1.8%, with Bank of Maharashtra, Bank of India, Union Bank of India, and Indian Bank declining by 5-7%.
An outlier with the PSB pack was State Bank of India, which gained about 1%. Apart from SBI, gains in private bank names like HDFC Bank and IndusInd Bank helped Nifty Bank not only end positive but also hit a lifetime high intraday. The index ended 0.1% higher and hit a record high of 43,853 points intraday.
More to come
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