Sensex ends 127 points down ahead of IIP data; Satin Creditcare surges over 11%

The BSE Sensex and NSE Nifty ended lower on Friday on account of selling in frontline blue chip counters taking cues from global counterparts. Investors also maintained cautious stance ahead of industrial production data for April which is scheduled to be released later in the day.

Sensex closed 127.71 points down at 26635.75, while Nifty 50 index closed 33.55 points down at 8170.05.

In the 50-share index, Hindalco, YES Bank, BHEL, ACC and Ambuja Cements gained between 1.50 per cent and 4.25 per cent. On the other hand, Tata Motors DVR, Tata Steel, GAIL, Tata Motors and Coal India slid between 2 per cent and 2.84 per cent.

Vinod Nair, head of research, Geojit BNP Paribas Financial Services said, “Continued weakness in the European market and a positive expectation over India’s IIP data oscillated the market which in the end closed with a loss of 0.41 per cent. A curb in global growth outlook by the World Bank and consensus that CPI inflation in May can increase to 5.6 per cent (v/s 5.39 per cent in April) have compelled investors to stay cautious in the D-Street.”

Traders were seen piling position in power stocks while selling was witnessed in realty, auto and consumer durables sector stocks. Sugar stock remained in limelight after Food Ministry proposed imposing 25 percent duty on export of sugar to ensure sufficient supply in the domestic market.

In scrip specific development, Visa Steel was locked at upper circuit limit after the company stated that it will seek shareholders’ approval for merger of its JV firm Visa Bao (VBL) in an attempt to optimize costs and secure availability of resources for its ferrochrome business.

Satin Creditcare Network surged over 11 per cent after foreign investment firm picked up 2.6 per cent equity stake in the company. Morgan Stanley Asia (Singapore) has purchased 8.30 lakh shares at Rs 375 apiece through block deal on National Stock Exchange (NSE).

Mustafa Nadeem, CEO, Epic Research said, “Nifty has been consecutively giving bearish signals for this week as the third day we ended with a bearish candle signalling upside being holded by bears which can result into honey trap for bulls. Nifty made a shooting star which is characterised by long upper shadow coupled with a bearish candle and that too formed after bearish belt hold confirms the bearishness going forward.”

Asian equity markets ended lower on Friday in thin holiday trade as uncertainty over Brexit referendum and caution ahead of a slew of Chinese data due this weekend and central bank meetings in the US and Japan next week, kept investors on edge. Markets in mainland China and Taiwan remained closed for the Dragon Boat Festival.