The market extended losses in last couple of hours of trade on Friday, with the falling more than 340 points intraday despite positive global cues. The dip in all sectoral indices as well as mid-smallcaps indicated that sentiment at traders and investors’ desk may remain weak ahead of weekend especially due lingering concerns over banking space after the PNB fraud case.
Volatility in crude oil prices and increase in trade deficit also hit market sentiment.
The 30-share BSE Sensex gained more than 200 points in morning on positive global sentiment, but as the day progressed, it wiped out all those gains and shed nearly 500 points from day’s high, especially after top PSU lenders SBI and Bank of Baroda declared their exposure to the PNB fraud case that raised concerns over risk management in banking space.
The index closed down 286.71 points or 0.84 percent at 34,010.76.
The 50-share NSE Nifty hit an intraday high-low of 10,612.90-10,434.05, before ending down 93.20 points or 0.88 percent at 10,452.30.
Both benchmark indices closed flat for the week, after losing nearly 6 percent in previous two weeks.
“Risk reward looks more realistic than before if Nifty trades around 10,000-10,200, which is 17.5-18x FY19 earnings estimates against 20x earlier,” Vibhav Kapoor of IL&FS said.
He further said the market should hold on to current levels, unless there is any bad news on domestic or global front.moneycontrol