The benchmark Sensex on Friday succumbed to heavy profit-booking and lost 498.82 points or 1.68 per cent. The sharp decline was led by banking shares. Less-than-expected corporate results, especially from banks, and the liquidity crunch witnessed in the marketaccelerated the fall.
The Sensex closed at 29182.95, which was dragged down by banking stocks with a loss of 3.14 per cent, followed by consumer durables at 1.85 per cent and auto index at 1.21 per cent.
On the National Stock Exchange (NSE), the 50-share Nifty closed at 8808.90 with a loss of 143.45 points or 1.60 per cent.
“The Coal India offer for sale (OFS) has sucked out some liquidity from the market. Moreover results of public sector banks announced so far have been disappointing with asset quality deteriorating significantly,” said Amar Ambani, Head of Research IIFL.
Gross NPA ratio have seen a sharp jump on sequential basis along with elevated restructuring activity. These trends are unlikely to reverse meaningfully over the next couple of quarters, said Mr. Ambani, adding, “Fundamentally private banks are better placed than public sector banks.”
PTI reports:
Rupee steady
In a volatile trade, the rupee, on Friday, recovered towards the fag-end and closed steady at 61.86 against the American currency at the inter-bank foreign exchange due to mild selling of dollars by banks and exporters.
The rupee resumed slightly higher at 61.84 a dollar against and firmed up further to 61.70 on initial selling of dollars by exporters.
However, the rupee dropped to 62.03
