The Sensex on Friday ended 128 points lower, its first weekly fall in three, and the Nifty dropped below the 8,200-mark ahead of key global events, including the US Fed meet and Brexit outcome, and release of IIP data back home.
The spillover from a weak global market also cast its shadow.
Caution prevailed in a choppy trade ahead of the US Federal Reserve meeting next week and worries over Britain’s referendum on its European Union membership on June 23, which dented sentiment.
Both the indices have recorded their first fall in three weeks.
After opening lower, the 30-share Sensex staged a strong comeback on value-buying coupled with short-covering but closed the day lower by 127.71 points, or 0.48%, at 26,635.75.
The gauge had lost 257.20 points in the previous session as investors booked profit after the recent run-up.
The wider NSE Nifty closed a shade lower than the 8,200-mark at 8,170.05, down 33.55 points, or 0.41%, after shuttling between 8,162.85 and 8,265.60.
Realty, auto, PSU, consumer durables, oil and gas, technology, IT, banking, FMCG, capital goods, metal and healthcare stocks melted.
The PSU banking index on NSE lost more than 1.5% after Moody’s Investors Service said weak earnings outlook for PSBs raises concern over high level of external capital need and their capitalisation profile is expected to deteriorate unless the government offers additional support.
On a weekly basis, the BSE Sensex fell 207.28 points, or 0.77%, and the Nifty 50.75 points, or 0.61%, halting a two-week rising streak.
“Today marked the third consecutive day of losses, with the Sensex and the Nifty closing lower by nearly 0.5%. Markets traded volatile as participants remained indecisive about the immediate future direction of the indices,” said Shreyash Devalkar, Fund Manager – Equities, BNP Paribas.
Brokers said lacklustre Asian shares and a lower opening in Europe on growing concerns about outlook for the global economy clouded sentiment.
Japan’s Nikkei fell 0.40% and Hong Kong’s Hang Seng index shed 1.20% while China’s financial markets were closed for a public holiday.
Among Sensex stocks, GAIL tanked most by falling 2.09% on profit-booking followed by Tata Steel 2.08%. As many as 21 stocks lost.
Others that faltered included Tata Motors, Coal India, SBI, Maruti Suzuki, ONGC, Asian Paint, ITC, Cipla, ICICI Bank, TCS, HDFC, Infosys, L&T, Bajaj Auto, Hero MotoCorp and Dr Reddy’s, falling by up to 2.04%.
Sector-wise, realty burnt its fingers the most by falling 1.03%, followed by auto, PSU and consumer durables.
In line with the overall trend, broader markets too remained feeble, with the mid-cap index falling 0.40% and small-cap 0.20%.
Foreign portfolio investors (FPIs) bought shares worth net Rs 234.20 crore on Thursday, as per provisional data from the stock exchanges.