Sensex Falls 1.3 Per Cent as Global Stocks Falter; Infosys Surges
Mumbai: The BSE Sensex posted its biggest fall in 2-1/2 weeks on Friday, as blue-chips continued to be hit by concerns that weaker global markets would dent demand from foreign investors, although Infosys Ltd surged after earnings beat estimates.
Global shares, as measured by the MSCI All-Country World index, fell to a six-month low as investors worry about the prospect of a widespread economic slowdown while US monetary stimulus nears its end.
This led India's indices to their third consecutive weekly fall, with banking and metal stocks leading the decline on Friday.
Investors will now focus on consumer inflation data due on Monday, with a Reuters survey expecting inflation to have risen 7.2 per cent, according to a poll of 28 economists, weaker than 7.8 per cent in August.
The benchmark BSE Sensex closed down 1.28 per cent at 26,297.38, declining for the fourth session in the past five. The index fell 1.02 per cent for the week.
The broader Nifty fell 1.26 per cent to close at 7,859.95, falling 1.1 per cent in the week.
"The fall has more to do with international markets. This has given better entry valuations as our market is still a 'buy-on-decline' market," KR Choksey Securities managing director Deven Choksey said.
Foreign investors have played an integral role in the record-setting rally in Indian shares this year, buying a net $13.8 billion worth of stocks till Thursday.
"We have seen Infy (Infosys) earnings and I expect positive earnings surprises from corporates. We believe earnings growth will accelerate in the second half of this fiscal," Mr Choksey said.
Infosys Ltd surged 6.6 per cent after its July-September earnings beat estimates, triggering a rally in the sector.
However, Friday was more about falls, with financial stocks leading the decline. State Bank of India, which gained 2.8 per cent in the previous session, closed down 1.14 per cent, while ICICI Bank ended 2 per cent lower. The stock gained 2.8 per cent on Thursday.
Among metal stocks, Hindalco Industries, which gained 6.1 per cent in the previous session, closed down 4.9 per cent, while Tata Steel ended 4.2 per cent lower.
Vedanta Group companies plunged after shares of its British-listed parent, Vedanta Resources Plc, fell 8 per cent after reporting lower quarterly output at its oil and gas, zinc and Zambian copper businesses.
Sesa Sterlite ended 4.6 per cent lower, while Hindustan Zinc Ltd closed down 4.2 per cent.
Heavyweight consumer stocks have also witnessed selling pressure. ITC Ltd closed 3.4 per cent lower, while Hindustan Unilever ended down 2.5 per cent.
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