Markets extend slide for second straight session

MUMBAI: Benchmarks extended their slide for the second session on Friday, suffering their first weekly drop in six, as lacklustre global cues and less-than-stellar earnings compelled investors to unwind bets.

The BSE Sensex tumbled over 188 points to close at 34,915.38, while the Nifty shed 61.40 points to 10,618.25 on across-the-board selling. Barring BSE Consumer Durables, all other sectoral indices ended in the red.

Unabated foreign fund outflows and a weak rupee added to the gloom, brokers said. Global cues were weak as investors eyed the outcome of Us-china trade talks as well as the US jobs report. The BSE 30-share barometer opened higher at 35,144.96 and advanced to 35,206.55 in morning trade on value-buying in recently battered stocks.

However, profit booking at every rise pulled it down to a low of 34,847.61.

It finally closed at 34,915.38, down 187.76 points or 0.53%. This is its weakest closing since April 26, when it had settled at 34,713.60.

The wider NSE Nifty too fell by 61.40 points or 0.57% to end at 10,618.25. It shuttled between 10,700.45 and 10,601.60 during the session. On a weekly basis, the benchmarks recorded their first weekly drop in six.

The Sensex lost 54.32 points, or 0.16%, while the Nifty dropped 74.05 points, or 0.69% during the week.

Meanwhile, foreign institutional investors (FIIS) net sold shares worth ₹148.42 crore and domestic institutional investors (DIIS) sold shares worth ₹578.92 crore on Thursday’s trade, provisional data showed.

“Market continued to fall amid weak global cues and flight of foreign funds ahead of US job data. Rupee weakened as positive US employment data might lead to Fed’s monetary tightening. Mixed earnings from corporates and valuation concerns compared to other emerging markets influenced investors to book some profit,” said Vinod Nair, Head of Research, Geojit Financial Services.

On the macro front, India’s services sector continued to improve i n April, mainly spurred by increased business activities, and job-creation accelerated at the fastest pace in more than seven years, a monthly survey showed.

With growth in new orders and easing inflationary pressures also helping in improved demand conditions, the Nikkei India Services Business Activity Index climbed to 51.4 in April from 50.3 in March.