Markets Snap Five-Day Rally; Sensex Tumbles Over 600 Pts

Market benchmarks Sensex and Nifty wilted under selling pressure on Friday after a five-day rally as investors pared exposure to banking, financial and consumer durable stocks amid mixed trends in global markets.

Rising global crude prices, a depreciating rupee and persistent foreign fund outflows further weighed on sentiment, traders said.

Profit-taking also came into play as the 30-share BSE Sensex tanked 609.28 points or 0.82 per cent to settle at 73,730.16. During the day, it lost 722.79 points or 0.97 per cent to 73,616.65.

The NSE Nifty declined 150.40 points or 0.67 per cent to 22,419.95. On a weekly basis, the BSE benchmark advanced 641.83 points or 0.87, and the NSE Nifty climbed 272.95 points or 1.23 per cent.

"The fall was on expected lines as both the benchmark indices had rallied for five straight sessions, and profit-taking has been due for some time.

"Correction is also attributed to global factors after the Japanese Yen fell to a new 34-year low and disappointing US data pushed its benchmark yields to over 4.7 per cent, thus worsening hopes of an interest rate cut in the medium term," said Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.

Bajaj Finance was the biggest drag on the Sensex chart, skidding nearly 8 per cent after the company's March quarter earnings failed to cheer investors. Bajaj Finserv also declined over 3 per cent. IndusInd Bank, Nestle, Kotak Mahindra Bank and Mahindra & Mahindra were among the other laggards.

Meanwhile, Tech Mahindra jumped over 7 per cent after the IT services company's CEO outlined an ambitious three-year roadmap to accelerate revenue growth and lift margins.

Wipro, ITC, UltraTech Cement, Titan and Axis Bank were among the gainers.

In the broader market, the BSE midcap gauge jumped 0.83 per cent, and the smallcap index climbed 0.27 per cent.

Among the indices, bankex declined 0.70 per cent, financial services (0.68 per cent), teck (0.26 per cent), auto (0.25 per cent) and telecommunication (0.15 per cent).