However, analysts feel that domestic markets have largely discounted global cues, but added that the uncertainty around the tariff on steel and aluminium imports proposed by US President Donal Trump could have a short-term impact on steel companies. "I would definitely avoid steel stocks at the moment because of global uncertainties but also the valuations are too high," said Rudramurthy, managing director at Vachana Investments.
Trump on Thursday set import tariffs of 25 per cent on steel and 10 per cent on aluminium, but exempted Canada and Mexico and offered the possibility of excluding other allies. Steel Authority of India Ltd and Tata Steel Ltd were down 4.4 percent and 1.7 percent, respectively.
IT stocks bucked the weak trend with the Nifty IT index rising 0.5 per cent. "I would bet on IT stocks, especially mid-caps, because valuations are low and strong earnings are expected," Rudramurthy added.
GTL Infrastructure hit lower circuit of 20 percent after the company said the impact of Aircel's insolvency will be materially adverse for the company.