The BSE Sensex tanked 792 points, or 2.25 percent, to end at 34,377 on Friday after the Reserve Bank of India (RBI) decided to hold key interest rates, while the NSE Nifty50 dipped 283 points, or 2.67 percent, to settle at 10,316. Benchmark indexes saw their biggest ever weekly fall in absolute terms weighed down by macro-economic concerns.
The RBI's monetary policy decision to keep repo rate unchanged at 6.50 percent surprised the market. The currency market responded sharply negative with the rupee breaching the 74 per dollar mark after the RBI's decision, triggering sharp selling in equity market ahead of close.
For the week, Nifty shed 614 points, while the Sensex dropped 1,850 points. Broader markets mirrored frontline indexes in terms of decline. Both midcaps fell more than 2.6 percent.
Only Nifty IT ended in the green after rupee's sharp fall, while all bank shares except IndusInd and HDFC settled negative. Shares of three oil marketing companies, IOC, HPCL and BPCL tanked over 17 percent each and the Oil & Gas sector turned out to be the worst performing sector today.
ONGC shares fell 14.5 percent. Market breadth stands in favour of declines with 7 shares falling against every 2 stocks advancing.
(Market update as of 3.45 pm)
Sensex, Nifty extend losses as RBI keeps repo rate unchanged, rupee hits 74 per dollar for the first time
Indian equity market extended losses on Friday ahead of the Reserve Bank of India's Monetary Policy Committee meeting outcome later at 2.30 pm. The BSE Sensex extended losses, falling by more than a percent or by 368 points to trade at 34,801, while the NSE Nifty50 dipped 1.35 percent, or 143 points to trade at 10,456 at 11.45 am.
The Nifty touched an intra-day low of 10,445, falling 1.45 percent.
Broader markets continued to trade under pressure with the BSE MidCap falling by 1.47 percent. BSE LargeCap also traded lower by 1.43 percent, while BSE SmallCap dipped 0.89 percent.
Among sectoral indices, 36 sectors were in decline on Friday with BSE Oil & Gas being the top loser with more than 11 percent loss. BSE Consumer Durables advanced 1.5 percent.
The advance-decline ratio favoured declines with 1,465 stocks falling against 893 advancing on the BSE.
HPCL (down 22.59 percent), BPCL (17.98 percent), IOC (14.61 percent), ONGC (13.98 percent) and GAIL (8.57 percent) were top losers among Nifty50 stocks.
On Friday, IOC's market cap declined by Rs 13.80 percent, shedding Rs 18,983.05 crore, while BPCL's went down by 17.70 percent or Rs 12,677.805 crore. HPCL's has fallen Rs 6,944.88 crores or by 21 percent.
Together, these companies lost over Rs 38,605 crore in market cap on Friday. Since yesterday, the total loss in market cap was around to approximately Rs 64,560.
Apart from public sector oil marketing companies and refiners, Hindalco shares dipped 4.5 percent, Reliance was down by 3.7 percent, Vedanta traded lower by 3.46 percent, M&M also went down by 3.24 percent. Coal India shares lost 2.63 percent.
Gainers included Titan, IndusInd Bank, Bharti Infratel, Infosys, HCL Technologies, Kotak Mahindra Bank, PowerGrid Corp, TCS, rising by up to 4.2 percent.
First Published: IST