Sensex Falls Over 300 Points; Nifty Below 8,100

Indian shares fell nearly 1.5 percent on Friday and were poised to end the week flat as auto makers dropped on sharp declines in monthly sales and wireless providers were hit by worries about intensifying competition.

Sentiment was also muted ahead of the release of the U.S. monthly jobs data, a referendum in Italy over its constitution, and the Reserve Bank of India’s policy review next week.

“Primary reason is non-farm (payrolls) data which is causing some concern apart from the Italian referendum on Sunday,” said Dipen Shah, senior vice president, private client group research, Kotak Securities.

The broader NSE Nifty was down 1.33 percent at 8,084 as of 3.10 p.m., dragged down by auto and FMCG shares.

The benchmark BSE Sensex was 1.24 percent or 328 points lower at 26,231.55.

Auto makers fell after they reported monthly domestic sales in November plunged from a month earlier as an intense cash crunch brought a recent recovery in consumer demand to a screeching halt.

Maruti Suzuki and Tata motors fell over 3 percent each while TVS Motor dropped 2.42 percent.

Telecom companies continued to languish after Reliance Industries on Thursday extended an offer of free data and voice services by its telecoms unit, Jio, raising concerns about the cut-throat competition in the sector.

Idea Cellular declined as much as 2.40 percent.

Banks fell on caution ahead of the RBI’s policy decision next week. Kotak Mahindra Bank dropped as much as 3.12 percent and Housing Development Finance Corp declined 2.52 percent.

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Source:Ndtv