Sensex plunges 334 points, Nifty below 12,000-mark driven by losses in banking, auto stocks; Yes Bank, SBI among top losers

  • A day after RBI surprisingly maintained status quo in its key policy rates and projected slower economic growth, investors turned cautious, weighed by weak macro indicators

  • Kotak Bank, Tata Steel, RIL, Asian Paint, TCS, Infosys and HDFC Bank closed with gains. Of the 30 Sensex stocks, 23 closed in the red and seven finished with gains

  • Sectorally, BSE auto index suffered the most by losing over 1.80%, followed by finance, utilities, realty and bankex

Mumbai: Indian equity indices buckled under selling pressure for the second straight day on Friday as slowing growth and lack of buying triggers took a toll on investor sentiment.

The BSE benchmark Sensex plummeted over 334 points while the NSE Nifty slipped below the key 12,000-level, dragged by heavy losses in banking and auto stocks.

The market mood was risk-averse a day after the Reserve Bank of India (RBI) disappointed on the rate cut front and also projected slower growth for this fiscal, traders said. Additionally, concerns over the fiscal deficit and a weakening rupee weighed on bourses, they added.

After opening on a positive note, the 30-share BSE Sensex witnessed a continuous slide and went on to hit a low of 40,393.46 during the day. The index finally settled at 40,445.15, down 334.44 points or 0.82 percent.

 Sensex plunges 334 points, Nifty below 12,000-mark driven by losses in banking, auto stocks; Yes Bank, SBI among top losers

Representational image. Reuters.

Likewise, the 50-share Nifty shed 96.90 points or 0.81 percent to settle at 11,921.50.

On a weekly basis, the Sensex dropped 348.66 points or 0.85 percent; while the Nifty lost 134.55 points or 1.11 percent.

Yes Bank led the laggard's list on the Sensex with a nearly 10 percent drop after Moody's Investors Service downgraded the private sector lender's ratings.

Other top losers were SBI, IndusInd Bank, Tata Motors, Mahindra and Mahindra and HDFC.

On the other hand, Kotak Bank, Tata Steel, RIL, Asian Paint, TCS, Infosys and HDFC Bank closed with gains. Of the 30 Sensex stocks, 23 closed in the red and seven finished with gains.

"Clouds over economic growth outlook and premium valuation influenced investors to stay away from rate-sensitive stocks. While rising 10-year yield due to spike in inflation and potential slip in fiscal path may result in near term consolidation in the market," said Vinod Nair, Head of Research Geojit Financial Services.

Sectorally, BSE auto index suffered the most by losing over 1.80 percent, followed by finance, utilities, realty and bankex.

Telecom index was the sole gainer on the chart.

Vodafone Idea shares crashed about 9 percent on Friday, spooked by company's chairman Kumar Mangalam Birla statement that the telco "will have to shut shop" in the absence of government relief.

Shares of oil and gas companies fell amid reports that OPEC and other major producers will announce fresh output cuts.

ONGC fell 1.39 percent, HPCL 0.47 percent, IOCL 0.23 percent and BPCL 0.20 percent.

Shares of Petronet LNG saw a dip of 0.17 percent to Rs 271.65.

According to reports, OPEC and Russia along with other producers agreed to one of the biggest output cuts to prevent oversupply in the market.

Crude benchmark Brent Futures rose 0.30 percent to trade at $63.58 per barrel.

The Indian rupee was trading near the day's low level at 71.40 per dollar.

In contrast to the Indian market, Asian bourses were trading higher as investors turned hopeful of the US and China striking a phase one trade deal following President Donald Trump's latest comments that both sides were moving on track.

In contrast to the Indian market, Asian bourses were trading higher as investors turned hopeful of the US and China striking a phase one trade deal following President Donald Trump's latest comments that both sides were moving on track.

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Updated Date: Dec 06, 2019 18:05:30 IST