The S&P BSE Sensex fell 465.75 points, or 0.55%, to close at 83,938.71, while the NSE Nifty 50 fell 155.75 points, or 0.60%, to end at 25,722.10.
Top movers
On the 30-share Sensex, losses were led by Eternal, NTPC, Kotak Mahindra Bank, ICICI Bank and Bajaj Finserv, which fell between 1% and 3.5%. Private lenders weighed on the benchmarks amid concerns about potential outflows due to the new rules for participating in the index. The Securities and Exchange Board of India (SEBI) on Thursday said banking stock indices linked to derivatives contracts will be restructured in a phased manner by March 2026.
Heavyweights HDFC Bank and ICICI Bank, the two largest components of the benchmark indices, fell 1.1% and 1.3% respectively.
The Nifty 50 and Sensex rose 4.5% and 4.6% in October to close about 2.1% and 2.4% below their September 2024 record highs.
Expert views
Indian shares ended decisively lower after a volatile session as investors booked gains amid mixed corporate earnings and cautious global sentiment against the backdrop of a strong dollar, said Vinod Nair, head of research at Geojit Investments. He added that most sectors closed in the red, pressured by renewed FII selling, which has turned cautious following Powell’s hawkish statement and as US-China trade development fell short of expectations.
“However, PSU banks outperformed on expectations of increased FDI limits and better results in the second quarter. After a strong rally, markets are profit booking as much of the economic developments have been factored in. Buy-on-dips are expected to remain a trading strategy as quarter-on-quarter optimism remains solid,” Nair said.
Global markets
Global stocks were on track for a seventh straight month of gains on Friday, while the dollar hovered around a three-month high, after positive earnings figures from Amazon and Apple boosted optimism about technology and AI-driven growth.
European shares opened slightly lower ahead of eurozone inflation data after the European Central Bank said on Thursday that another rate cut was unlikely in the near term.
Nasdaq futures rose 1.1% and S&P 500 futures rose 0.6% after Amazon’s blowout results sent its shares up more than 11% in premarket trading, while Apple gained more than 2% on expectations of strong iPhone sales.
In Asia, Japan’s Nikkei rose more than 2%, pushing weekly and monthly gains to 6% and 16.4% respectively, the biggest monthly advance since 1990, on hopes of aggressive fiscal stimulus under new Prime Minister Sanae Takaichi. Meanwhile, the Bank of Japan kept interest rates unchanged despite expectations of a rate hike.
Chinese blue chips and Hong Kong’s Hang Seng each fell about 1.5% after data showed Chinese factory activity shrank at the fastest pace in six months.
US Treasury yields were steady, with the 2-year yield at 3.61% and the 10-year yield at 4.10%, both rising this week. Spot gold fell 0.3% to $4,008 an ounce, down 2.5% for the week and well below last week’s record high of $4,381.
Rough impact
Oil prices fell on Friday, poised for a third straight monthly decline, as a stronger US dollar and weak Chinese data weighed on sentiment, while rising output from major producers offset the impact of Western sanctions on Russian exports.
Brent crude futures fell 0.18% to $64.88 a barrel, and U.S. West Texas Intermediate fell 0.35% to $60.36 by 0744 GMT.
Rupee vs dollar
The Indian rupee fell on Friday, ending the session marginally lower at 88.7650 against the dollar. The currency was little changed this month and remained above its record lows as sporadic dollar sales by state-owned banks helped limit losses and ensure a quiet end to October.
The dollar index last stood at 99.54 and was expected to end the month up 1.8% even as most Asian currencies strengthened. The rupee fell 1% this week.
(With input from agencies)
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