NEW DELHI: Indian stock benchmarks on Friday erased most of yesterday's gains as a host of macroeconomic worries came home to roost with monsoon being the top concern for Dalal Street investors. High valuations and lack of earnings growth remained underlying issues.
BSE Sensex plunged 407 points or 1.03 per cent to end at 39,194. The NSE key index Nifty settled at 11,724, down 108 points or 0.91 per cent.
The advance-decline ratio, however, on BSE stood close to 1:1. India VIX, meanwhile, spiked 4.46 per cent.
Market at a glance:
Among Sensex stocks, 24 scrips ended in the red with YES Bank, down 4.36 per cent, as the worst performer. Maruti Suzuki, HDFC, Hero MotoCorp, HUL and Sun Pharma were among other stocks that formed the loser pack.
However, the State Bank of India, up 1.28 per cent, gained the most.
In the BSE sectoral space, 17 of total 19 sectors settled lower and two ended flat. Auto, telecom and energy shed over 1 per cent each. FMCG shed 0.91 per cent and healthcare 0.84 per cet. Power and basic materials were the only ones that shut shop in the green.
The BSE Midcap index declined 0.38 per cent while the BSE Smallcap skipped the selloff altogether to end 0.14 per cent higher.
Monsoon has progressed slower than usual after hitting the southern state of Kerala nearly a week late. Monsoon rains have been 44 per cent lower-than-average so far in June, delaying the sowing of summer-sown crops and raising concerns that parts of the country could face a worsening drought, according to Reuters. Market participants will be keenly watching the progress of monsoon over the next few days.
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