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Stock markets registered deep losses on Friday, with the Sensex shedding 463 points to close at 34,315. NSE benchmark index Nifty fell 149 points to settle at 10,303, 1.4 per cent lower from the previous close. Strong losses across sectors – led by finance, auto, energy and IT stocks – came amid weak global cues, leading to a weekly loss of 1.2 per cent for the domestic markets. Friday’s fall coincided with the Reserve Bank of India’s move to hike lenders’ single borrower exposure limit for non-banking financial companies (NBFCs) which do not finance infrastructure. Analysts say the markets did not take the RBI action to support the NBFC sector positively.
Here are 10 things to know:
1. Top laggards on the 50-scrip index Nifty were Indiabulls Housing Finance, Yes Bank, Reliance Industries, HCL Tech and HDFC – closing between 4.2 per cent and 16.4 per cent lower.
2. Overall breadth of the markets was sharply negative, with 531 stocks closing higher on the NSE against 1,214 decliners. On the BSE, 879 stocks advanced while 1,712 fell.
3. The Nifty Financial Services – comprising financial services stocks – declined 1.3 per cent.
4. Analysts say sentiment in the NBFC sector is down. “Minor concessions by the RBI are not helping prices as market participants worry about the next default or delay and its repercussions on the already fragile mood,” news agency Reuters cited Deepak Jasani, head of retail research at HDFC Securities, as saying.
5. Stock markets all round were a bit lacklustre: data showing China’s economy growing at its slowest pace since 2009 weighed on shares in Asia, although Chinese shares staged a recovery after the securities regulator announced a series of measures to aid the market. China’s economic growth in the third quarter slowed to 6.5 per cent, its weakest pace since 2009 and below expectations, as a campaign to tackle debt risks and the trade war with the United States weighed on the economy.
6. The European Commission late on Thursday told Rome in a letter that planned government spending was too high and that its structural deficit would rise instead of fall, and that the country’s public debt would not fall in line with EU rules.
7. MSCI’s broadest index of Asia-Pacific shares outside Japan was up less than 0.l per cent after earlier falling as much as 0.9 per cent ahead of the China GDP reading. Italian stocks tumbled nearly 1.2 per cent, while its bank stocks in particular fell almost 3 per cent.
8. While it isn’t unusual for the EU to ask member countries for clarification on points of their budget plans, the sending of a formal letter and the tone of the comments were particularly strong, according to analysts.
9. Meanwhile, net sales of equities by domestic institutional investors (DIIs) stood at Rs 343.11 crore on Wednesday, while foreign portfolio investors (FPIs) net purchased shares worth Rs 140.02 crore, provisional data showed.
10. The Sensex and Nifty declined 417 points and 168 points for the holiday-shortened week. The markets had remained shut on Thursday for Dussehra.
(With agency inputs)
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