Mumbai: As foreign institutional investors pared their holdings following depreciation of rupee to one-year low, equity benchmarks fell face down on Friday. Even the announcement of a $447 billion job plan by US President Barrack Obama failed to ignite global market sentiments.
Fed chairman Ben Bernanke's speech too was devoid of quantitative easing assurance.
The 30-share BSE Sensex tumbled 298.57 points or 1.74 per cent, to close at 16,866.97 and the 50-share NSE Nifty fell 93.80 points or 1.82 per cent, to end at 5,059.45.
Experts justified profit bookings in Friay's session as the market had rallied in six out of previous seven sessions. "I will put this down to profit booking because in the last few trading sessions, the market has gone up from 4750 to 5150," Portfolio Manager, PN Vijay said.
The Indian rupee depreciated for the fifth consecutive session on Friday and touched a fresh one-year low at 46.49 per dollar, hammered by euro's losses. Soumyo Dutta of Citibank fears the momentum could push it beyond Rs 47 (to a dollar).
Dutta has his eyes on the upcoming FOMC meet, the ONGC FPO, and the vote on Obama’s jobs report which will determine the movement for the rupee.
For the week, the Sensex and Nifty closed marginally in the green.
All key sectors participated in the fall; the BSE Metal, IT, Bank, Oil & Gas, Realty and Power indices were down 2-3 per cent each. The BSE Midcap and Smallcap indices fell over 0.8 per cent.
Heavyweights Reliance Industries, Infosys, ICICI Bank, SBI, HDFC Bank, BHEL and TCS plunged 2-2-3.7 per cent. Sterlite Industries, Hindalco and Jaiprakash Associates were top losers; these stocks crashed 4.5-5.5 per cent.
ADAG stocks like Reliance Communications, Reliance Power, Reliance Infrastructure and Reliance Capital plunged 4-6 per cent.
Tata Motors and Tata Steel were down 3 per cent each. ITC and BHEL slipped close to 1 per cent.
However, HUL shot up 2.5 per cent on brokerage upgrades. Hero Motocorp rose 2 per cent. HDFC, ONGC and Bharti Airtel were marginally in the green.
GTL surged 33 per cent, to close at Rs 70 as company awaits lenders' nod for a CDR (corporate debt restructuring). Next board meet of GTL lenders will be held on September 19, say sources. GTL Infrastructure gained 9.5 per cent. Both stocks witnessed tremendous volume.
Midcaps like Arvind, Jubilant Life, Berger Paints and SKS Microfinance were up 5-8 per cent. However, Jindal Saw, SREI Infra, Hexaware Tech, India Cements and KGN Industries declined 5-6 per cent.
About 1243 shares advanced as against 1678 shares declined on BSE.
On the global front, European markets were trading 0.7-1.4 per cent lower, at the time of closing of Indian equities. Asian markets too saw sell-off in late trade.
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