Below expected earnings by two top blue-chip stocks RIL and Bharti Airtel sparked selling onslaught in markets on Friday and the benchmark Sensex lost over 150 points to close at two-month low level, dampening the excitement over US coming out of deep recession.
After rising sharply to a high of 16,360.88 during initial trade, the BSE barometer later tumbled with Reliance Industries, country's most valued company, losing 3.62 per cent after reporting a fourth straight fall in quarterly profits on lower refining margins.
Brokerage firm Hightech Securities's Director Sanjeev Bhambari, however, said RIL numbers were good but the pending decision on tax and on-going fight between Ambani brothers on gas pricing induced heavy selling.
Another blue-chip Bharti Airtel, country's biggest telcom operator, reported a 13 per cent rise in the second quarter profit which fell below market expectations. Its shares closed sharply lower by 6.38 per cent.
Marketmen said below expected earnings by RIL and Bharti Airtel weighed on investor sentiment and Sensex, which gained nearly 300 points in early trade on excitement over world's largest economy US coming out recession, came under pressure.
The 30-share index finally closed lower at 156.44 points at 15,896.28, extending its losses to the fifth straight day. It has lost 914 points or 5.44 per cent in during the week.
FIIs reportedly were aggressive sellers in the cash segment on the first day of new derivatives series. Rising inflation, which analysts visualise to touch 6.5 per cent, also triggered selling pressure.