After spending most of the session trying to recover, key Indian indices finally managed to pare most of their losses and end near their day’s high level.
Weak global cues and the rupee’s continuous southward journey versus the dollar for a second consecutive day ensured that the markets remain pressured through the day. The rupee touched an all-time low versus the dollar at 56.3 on Friday.
The sentiment improved amid reports that the Reserve Bank of India (RBI) and the public sector oil marketing companies (OMCs) are discussing moving 50% of their dollar purchases via a single state-owned bank, though no decision has been made.
The Indian Meteorological Department's (IMD) decision to retain its forecast for normal monsoon for a third successive year has also helped.
While most Asian markets ended lower, European markets were also trading weak as German business confidence declined to its lowest level in over two years.
BSE Sensex: 16,972, down 0.35%
NSE Nifty: 5,146 down 0.4%
Although sectoral indices were weak, losses were muted with Metals being the only index to lose over 1%, down 1.5%. Capital Goods, Teck, IT, FMCG and Oil&Gas lost between 0.2-0.6%. While Realty and Auto were the only gainers up 0.4% and 0.1% respectively, Power, Bankex, Consumer Durables, PSU and Pharma ended flat.
The broader markets also ended flat with the BSE Mid-Cap index declining 0.1% and the BSE Small-Cap index nearly unchanged.
Top declining stocks on the Nifty were JP Associates, Hindalco Inds, ACC, Ambuja Cements, Tata Steel, HCL Tech, SAIL, Jindal Steel, Coal India and Axis Bank.
The notable gainers on the Nifty were ONGC, Kotak Mahindra Bank, Bank of Baroda, Cipla and Maruti Suzuki.
Cox & Kings gained ~4.1% to close at Rs.128.30 on reports that the company may sell its stake in its UK unit.
Manappuram Finance surged to Rs.24.60, up 6.7% as about 8.04 shares, or 1% of its equity, were traded in three block deals.
Welspun Corp gained 1.1% to close at Rs.121.55 as the company won new orders worth Rs.12.4bn from domestic and international markets.
Nile advanced 10% to close at Rs.100 after it sold glass lined equipment unit to De Dietrich Process.
Parikh Herbals close down 3.2% at Rs.458.80. The stock rose earlier as the company said its Board would consider a stock split on Jun 30.
Kingfisher Airlines lost 1.1% and finished at Rs.13.67 on reports that 15 pilots stopped flying planes on Thursday to protest the delay in their salaries.
Sterlite Industries recovered from a low of Rs.96.80 and closed up 0.3% at Rs.99.65 while, Hindustan Zinc slipped 1% to Rs.118.60. Reports stated that the government was against Vedanta’s offer to buy its stake in Hindustan Zinc and Bharat Aluminium for Rs.170bn rupees.
Tata Motors ended down 0.4% at Rs.247 after rising to Rs.251.20. The stock rose earlier after Calcutta High Court said that the Singur Land Rehabilitation and Development Act was “unconstitutional and void” as the President’s assent was not taken.
Cement companies ACC, Ambuja Cement, Ultra Tech Cement declined 0.6-3.3% after the Competition Commission of India slapped a fine of Rs. $1.1bn on 11 cement companies as it found them guilty of cartelisation. Many of these companies have said that they will appeal against the CCI’s ruling.