Offloading in banking, IT stocks weighs on mkts

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.