Key indices drift lower on weak global cues

Investor Sentiment At Low Ebb

♦ Sensex opened lower and fell further by 513 pts to day’s low of 65,895.41

♦ However, a rebound in auto shares helped Sensex trim losses and touch a high of 66,478.90

♦ Nifty fell by 42.95 pts or 0.22% to 19,751.05

♦ Weak revenue guidance of IT sector

♦ Higher-than-expected US inflation data further hit mkts

♦ FIIs sold shares worth Rs1,862.57 cr

Mumbai: Equity benchmark indices Sensex and Nifty declined for the second straight session on Friday following selling in banking, financial and select IT shares amid a weak trend in global markets. The 30-share BSE Sensex dropped by 125.65 points or 0.19 per cent to close at 66,282.74 as 16 of its constituents fell and 14 advanced. The index opened lower and fell further by around 513 points to the day’s low of 65,895.41 in morning deals. However, a rebound in auto shares helped Sensex trim losses and touch a high of 66,478.90 in the pre-close session before settling lower. The broader Nifty of NSE fell by 42.95 points or 0.22 per cent to close at 19,751.05, with 27 of its components ending in the red and 23 in the green.

“Weak revenue guidance of the IT sector and the current uptick in crude prices weighed on the sentiment. While higher-than-expected US inflation data pulled down the week’s early uptrend, which was positive on a remark of a less hawkish US Fed meeting. However, some optimism was visible from domestic factors like a steep decline in domestic inflation and impressive industrial production data, along with bright earnings expectations for Q2,” said Vinod Nair, head (research) at Geojit Financial Services.

“Mixed trends on the sectoral front kept the participants busy wherein auto and realty posted decent gains while pressure continued in banking and IT,” added Ajit Mishra, SV-P (technical research), Religare Broking Ltd. Foreign Institutional Investors (FIIs) were net sellers on Thursday as they sold shares worth Rs 1,862.57 crore, according to data available with BSE.