Markets end marginally lower as bank stocks slide; post weekly loss

Rupee settles two paise lower at 75.58 against the US dollar

MUMBAI: Equity benchmark BSE Sensex ended marginally lower after a choppy session on Friday as investors weighed the fiscal impact of the government's economic stimulus.

According to market experts, participants fear that the Rs 20 lakh crore package may not result in direct and immediate boost to demand, raising doubts over the country's economic revival in the near term.

After slumping over 350 points during the day, the 30-share index pared most losses to settle 25.16 points or 0.08 per cent lower at 31,097.73.

Similarly, NSE Nifty slipped 5.90 points, or 0.06 per cent, to close at 9,136.85.

M&M was the top laggard in the Sensex pack, cracking 4.70 per cent, followed by Axis Bank, Indusind Bank, Hero Motocorp, Sun Pharma and ICICI Bank.

On the other hand, Bharti Airtel, Asian Paints, Tata Steel, NTPC, HUL and Reliance spurted up to 2.68 per cent.

During the week, the Sensex declined 544.97 points or 1.72 per cent, while broader Nifty fell 114.65 points or 1.23 per cent.

Besides uncertainty over the effectiveness of the fiscal stimulus package, the spike in COVID-19 cases in the country is weighing on investor sentiment, experts noted.

"Markets settled almost unchanged after hovering in a range, taking a pause after the recent dip. It opened marginally higher but the gains fizzled out in no time and it inched further lower.

Finance Minister Nirmala Sitharaman on Thursday announced a Rs 3.16 lakh crore package comprising free foodgrains for migrant workers, Rs 2 lakh crore concessional credit to farmers and working capital for street vendors in a bid to help those hit hard by the nationwide lockdown.

Announcing the third tranche of the stimulus package post market hours on Friday, she said the measures will focus on giving relief to agriculture and allied industries.

International oil benchmark Brent crude futures climbed 2.18 per cent to $ 31.81 per barrel.

On the currency front, the rupee provisionally settled 2 paise lower at 75.58 against the US dollar.