Market Close: Sensex nose dives 560 points
The benchmark index dipped by 560.45 points or 1.44 per cent on Friday on monsoon concerns and government's non-negotiating stance on super rich tax for FPIs. Auto and bank stocks lost the most during the day.
On the last day working day of the week, similar to Thursday, the BSE Sensex opened above the 39,000 mark at 39,058.73, continued to slip during the day to close at 38,337.01, down by 1.44 per cent, while Nifty50 closed at 11,419.25, down by 177.65 points or 1.53 per cent. The most traded index Nifty Bank lost 660.25 points or 2.17 per cent at 29,770.35.
Top loser for the day were Nifty50 frontrunners, M&M and Bajaj Finance down by more than 4 per cent each, followed by Bajaj Finserv, Eicher Motor and IndusInd Bank down by more than 3 per cent each. While on Sensex Tata Motors, HeroMoto and Yes Bank were the top loser down by more than 3 per cent each.
Index heavyweights there were dragging the market were HDFC contributing negative 67.32 points, HDFC Bank contributing negative 58.86 points, ICICI Bank negative 54.12, Kotak Bank negative 43.77 points and Reliance negative 40.56 points. Other draggers included ITC, Bajaj Finance, Infy, SBI, L&T and IndusInd Bank.
All sectorial indices closed in red on Friday, Nifty Auto and Bank indices were down by 3.31 per cent and 2.17 per cent, respectively, followed by Nifty Pharma down by 2.23 per cent and Media down by 2.51 per cent, while FMCG was down by 1.78 per cent, Metal down by 1.32 per cent and Realty down by 1.47 per cent on Friday.
Rain deficit this monsoon season has worsen to 17 per cent reported the Indian Metrology Department (IMD). All in the next few days heavy rain is expected in the Southern Peninsula, Saurashtra, Gujarat and Rajasthan will have to wait for rains.
On Thursday, the Finance Minister refused to relax the applicability of the a new surcharge on Foreign portfolio investors (FPIs) who operate as trust. The FM simply asked them to change their corporate structure to registered companies to escape the new tax treatment. This seems to have disappointed the many FPIs invested in India as it is not easy to restructure global funds for regional tax benefits.