Sensex sheds 360 points, Nifty ends above 17,500-mark; realty, IT stocks drag

• Follow

Indian benchmark share indices settled lower on Friday tracking a negative trend in global equities. In a choppy trade, Sensex ended 360.78 points or 0.61% lower at 58,765.58, while the broader NSE Nifty ended at 17,532.05, down 86.10 points or 0.49%.

“Despite favourable growth India’s core sector output, which accelerated by 11.6% in August from 9.9% in July, domestic indices were in red reflecting weak global cues and losses in heavyweights. High Eurozone inflation at 3.4% in September, slowing global growth and the existing Chinese crisis bolstered global sell-off. The auto sector is hold-on despite weak sales, in anticipation of festival demand, as numbers from major manufacturers showed a fall in September sales mainly due to semiconductor supply shortage,” said Vinod Nair, Head of Research at Geojit Financial Services.

Gainers & losers

Top gainers & losers on the Sensex.

Sectoral strand

Most sectoral indices ended in the red on the NSE. Nifty Pharma index gained 0.84%, Nifty Media index rose 0.75% and the Nifty Metal index was up 0.49%.

On the downside, the Nifty Realty index tumbled 1.51% while the Nifty IT index slipped 0.71% and Nifty Bank declined by 0.53%. Nifty Auto and Nifty FMCG lost in the range of 0.01-0.07%.

The fear gauge index, India VIX cooled off by 6.48% to 17.21 levels.

Broader markets

Broader markets outperformed benchmark indices as the BSE MidCap index ended marginally lower at 25,224 down by 28 points or 0.11% while the BSE SmallCap index advanced 133 points or 0.48% to 28,215.

The market breadth remained positive as 1,811 shares advanced compared to 1,421 declined while 176 remained unchanged.

Economy

The gross GST revenue collected in the month of September 2021 is Rs 1,17,010 crore, up by 23% YoY. Of this, CGST is Rs 20,578 crore, SGST is Rs 26,767 crore, IGST is Rs 60,911 crore (including Rs 29,555 crore collected on import of goods) and Cess is Rs 8,754 crore (including Rs 623 crore collected on import of goods).

The government has settled Rs 28,812 crore to CGST and Rs 24,140 crore to SGST from IGST as regular settlement. The total revenue of Centre and the states after regular settlements in the month of September 2021 is Rs 49,390 crore for CGST and Rs 50,907 crore for the SGST.

Further, the seasonally adjusted IHS Markit India Manufacturing Purchasing Managers’ Index (PMI) rose to 53.7 in September, from 52.3 in August, highlighting a stronger expansion in overall business conditions across the sector.

Global markets

Shares in Europe declined while Asian markets slipped, following an overnight drop on Wall Street. Markets in Hong Kong are closed for a holiday on Friday, while those in mainland China are closed for the Golden Week holiday from Friday till October 7.

Global markets have been roiled by fears of persistent high inflation, slowing growth and rising rates. Japan’s factory activity grew at the slowest rate in seven months in September as overall output and new orders shrank due to the fallout from the coronavirus pandemic, a survey showed on Friday. The final au Jibun Bank Japan Manufacturing Purchasing Managers’ Index (PMI) in September slipped to 51.5 on a seasonally adjusted basis from 52.7 in the previous month.

Meanwhile, in Europe, German inflation hit 4.1% in September 2021, its highest level for 29 years. The data showed that the price of energy and food items were the most affected by inflation.