Falling for the fourth straight session, the Sensex plunged over 310 points and the Nifty dropped by 105 points as positive GDP numbers for the second quarter failed to offset growing fiscal deficit concerns.

The 30-share BSE index Sensex, after scaling a high of 33,300.81 in early trade, slipped into the negative zone to touch 32,797.78, before settling at 32,832.94, down 316.41 points, or 0.95 per cent. This was its weakest closing since November 15, when it had finished at 32,760.44.

The 50-share NSE index Nifty too cracked the 10,200-mark and hit a low of 10,108.55 before finishing 104.75 points, or 1.02 per cent down at 10,121.80.

For the week, the Sensex recorded a fall of 846.30 points, or 2.51 per cent, while the NSE Nifty lost 267.90 points, or 2.57 per cent.

Among BSE sectoral indices, realty index fell the most by 1.99 per cent, followed by metal 1.75 per cent, infrastructure 1.63 per cent and oil & gas 1.47 per cent.

Major Sensex losers were Adani Ports (-3.00%), Bajaj Auto (-2.99%), Bharti Airtel (-2.74%), Sun Pharma (-2.59%) and State Bank of India (-2.47%), while the only three gainers were Kotak Bank (+0.23%), NTPC (+0.14%) and Maruti (+0.06%).

The GDP data failed to lift sentiment after India reported its fiscal deficit reached 96 per cent of the budgeted target for the fiscal year ending in March 2018, sending shares sharply lower on Thursday.

The Reserve Bank of India (RBI) is also meeting next week at a time of rising concern about a rally in crude prices, which rose following OPEC's decision to extend production curbs .

Nearly all analysts expect the central bank to keep rates on hold.

“Since there was a sharp run-up in the markets last week, there is a bit of profit-booking. Even though the GDP number is along expected lines, there is concern building up on the fiscal deficit front,” said Hitesh Agarwal, EVP & Head Retail Research, Religare Securities Ltd.

GDP growth

GDP grew 6.3 per cent in the July-September quarter, with robust expansion in manufacturing, electricity production and trade and hotels sectors.

This is higher than the 5.7 per cent GDP growth in the April-June quarter, but lower than the 7.5 per cent growth in the second quarter of last fiscal.

Manufacturing PMI

India’s manufacturing sector in November had recorded the strongest improvement in business activity in 13 months as new orders picked up supported by reduction in GST rates and strong demand conditions.

The Nikkei India Manufacturing Purchasing Managers’ Index (PMI) rose from 50.3 in October to 52.6 in November, indicating substantial improvement in operating conditions in the country’s manufacturing sector.

Also combined index of eight core industries rose 4.7 per cent in October 2017 on the back of higher refinery and coal production. [ The combined index grew 6.6 per cent in October 2016. ]

An official statement said, coal production increased by 3.9 per cent in October 2017 while crude oil refinery production grew by 7.5 per cent during the period under consideration.

Bharti Airtel stock plunged on reports that UIDAI has ordered a probe against the company. The telecom company said it has received a notice from UIDAI and in the process of providing a reply to that.

As per provisional data, foreign portfolio investors (FPIs) sold shares worth Rs 1,500.76 crore yesterday. Domestic institutional investors (DIIs) bought equities worth Rs 1,202.57 crore.

Asian shares and the dollar pared their modest gains on Friday, with risk appetites supported by advances on Wall Street but capped by concern as investors awaited the US Senate's vote on US tax reform legislation.

MSCI's broadest index of Asia-Pacific shares outside Japan was nearly flat on the day, after brushing a two-week low. For the week, it was 2.6 per cent lower. Japan's Nikkei stock index was up 0.1 per cent, on track to gain 0.9 per cent for the week.

(With inputs from Agencies)

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