The Indian market snapped 5-day gaining streak, dragged by financials and Reliance. SBI was the biggest drag on market with a contribution of 12 points to Nifty and 107 points to Nifty Bank towards downside move.
A sharp fall was seen in the PSU banking major SBI on the back of disappointing earnings print for the April-June quarter. The Sensex fell 155 points to close at 37,845, Nifty 41 points to 11,429. Broader markets too had a fall in-line with benchmarks.
The Nifty Bank index edged 196 points lower to 28,125 and Nifty Midcap index 101 points to 19,136. Broad-based fall took market breadth in favour of declines with advance-decline ratio at 1:2 during close.
The major downside move seen in State Bank Of India also dragged Nifty PSU Bank lower by nearly 4 percent, and was the biggest losing index, followed by Metal index with a fall of 2 percent and Pharma with 1 percent.
On the earnings front, SBI reported a loss of Rs 4,876 crore against the expectation of Rs 448 crore profit. Watchlist remains elevated at Rs 24,633 crore. The disappointing results led to a fall of 4.6 percent for the stock. Another Nifty Company Hindalco reported almost in-line earnings, but stock slipped over 2 percent.
From oil & gas space GAIL reported earnings in-line, but stock failed to mirror that and closed 3.4 percent lower. For the week, Sensex is up 0.8 percent, Nifty rose 0.4 percent and the Nifty Bank index rose 1.5 percent.
In the futures market, Nifty 11,500 Call added a little more than 4 lakh shares in the open interest, but premium fell 26 percent. The Nifty 11,200 and 11,350 Put Calls saw an addition of 1.4-1.6 lakh shares in the open interest with premium rising 15-16 percent. Nifty August Futures’ premium narrowed to 6 points from 17 points seen on Thursday.
Asian stocks closed lower on the last trading day of the week as uncertainty over U.S.-China trade relations lingered. Japan's Nikkei 225 fell 1.3 percent to close at 22,298, with miners and shipping sector stocks leading overall declines.
Semiconductor-related plays were also down, with Tokyo Electron dropping 3.5 percent. All but one of the 33 Topix subindexes finished the day in negative territory. Elsewhere, the Kospi pulled back by 0.9 percent to end at 2,283 as major technology names dragged the index lower.
Samsung Electronics fell 3.2 percent and SK Hynix declined 3.7 percent. The S&P/ASX 200 gave up early gains, edging down 0.3 percent to 6,278.40. Energy stocks led losses, losing 1.7 percent, while the heavily weighted financials sector recorded slim gains.Chinese equities finished higher, bucking the overall downward trend in the region. The Shanghai Composite closed 0.1 percent higher at 2,795 points. The smaller Shenzhen Composite gained 0.7 percent for the day and the blue-chip CSI 300 rose 0.2 percent. Hong Kong's Hang Seng Index pulled back by 0.8 percent.