Sensex, Nifty tank 1% on selloff in banking, IT stocks

Mumbai, PTI: Equity benchmark indices Sensex and Nifty buckled under selling pressure to settle nearly 1 per cent lower on Friday as investors pared exposure to bank and IT stocks ahead of the earnings season starting next week. A depreciating rupee against the US dollar further weighed on sentiment, traders said. The 30-share BSE Sensex tumbled 720.60 points or 0.90 per cent to close at 79,223.11 despite a positive beginning. During the day, it slumped 833.98 points or 1.04 per cent to 79,109.73. The NSE Nifty tanked 183.90 points or 0.76 per cent to 24,004.75. From the Sensex pack, Zomato, HDFC Bank, Tech Mahindra, Adani Ports, Tata Consultancy Services, ICICI Bank, Sun Pharma, Larsen & Toubro, HCL Tech and ITC were the major laggards.

On the other hand, Tata Motors, Nestle, Titan, Hindustan Unilever and Reliance Industries were among the gainers. In Asian marke t s, Seoul and Hong Kong settled in the positive territory while Shanghai ended lower. Japanese markets were closed for the New Year holiday. Markets in Europe were trading lower. US stocks were in the negative territory on Thursday. Foreign Institutional Investors (FIIs) turned buyers on Thursday after remaining net sellers for the past many days. They bought equities worth Rs 1,506.75 crore, according to exchange data. The rupee dropped 3 paise to close at a record low of 85.78 (provisional) against the US dollar on Friday.

Global oil benchmark Brent crude declined 0.43 per cent to USD 75.60 a barrel. In the previous session, the BSE benchmark jumped 1,436.30 points or 1.83 per cent its best single-day gain in more than a month to settle at 79,943.71. The Nifty surged 445.75 points or 1.88 per cent to 24,188.65.

Rupee falls 4 paise: The rupee depreciated 4 paise to close at a record low of 85.79 (provisional) against the US dollar on Friday, as strong dollar demand from importers and a muted trend in domestic equities weighed on investors' sentiments. Forex traders said the dollar gained against most currencies during 2024 and continued to remain on a strong footing this year. The US dollar index breached the crucial 109- mark.

The uptrend in the American currency was underpinned by expectations of fewer rate cuts and a view that the US economy will continue to outperform its peers globally. At the interbank foreign exchange, the rupee opened on a weak note and sank to an intra-day low of 85.80, and its high of 85.73 against the American currency. The local unit settled for the day at a record low of 85.79 (provisional), registering a fall of 4 paise over its previous close.

Reports of RBI selling US dollars supported the rupee at lower levels, traders said. On Thursday, the rupee depreciated 11 paise to close at a record low of 85.75 against the dollar.