Reuters
Indian shares fell yesterday, posting their first weekly loss in seven, as investors booked profits in recent outperformers after indexes hit record highs, while caution prevailed ahead of US jobs data later in the day.
US non-farm payrolls were expected to have increased by 230,000 jobs last month after rising by 214,000 in October, leaving room for the Federal Reserve to hold interest rates near zero well into next year.
However, broader losses were capped as heavyweights such as Mahindra and Mahindra and ITC rose while mining stocks like Sesa Sterlite also gained tracking firm trends in global prices.
“Markets have no big trigger left. Government’s decisions and even views in the parliament will drive markets.
The good part is they (government) are good expectation managers.
But markets are at all-time highs and valuation is a real concern,” said Daljeet S Kohli, head of research at IndiaNivesh.
The benchmark BSE index closed down 0.37% at 28,458.10 points. The index fell 0.8% this week, after gaining for the past six consecutive weeks.
The NSE index ended 0.3% lower at 8,538.30 points, falling 0.6% for the week.
Technology stocks fell with Tata Consultancy Services down 2.2% ahead of the US jobs data. Wipro closed down 2.3% while Infosys ended 1.5% lower.
Recent outperformers such as oil explorers fell. Explorers had gained for the last couple of sessions after crude prices bounced back from a multi-year low.
Meanwhile the rupee ended at a two-week closing high yesterday, tracking broad-based strength in Asian currencies against the dollar and continuing large foreign inflows into Indian financial markets, particularly debt, aiding gains.
For the week, the rupee staged a turnaround, snapping a five-week fall.
The local unit bucked the broader trend in Asia by gaining 0.4% on the week, although it was not alone as the Philippine peso also rose 0.8%.
In early trades, the dollar lost some ground against major currencies after European Central Bank chief Mario Draghi did not immediately expand the stimulus programme but gave indications to do so early next year.
For much of the session, the rupee traded in a narrow band as traders awaited the US non-farm payrolls data, due at 1330 GMT, for clues on the US rates outlook.
If the data comes in stronger-than-expected it would power the dollar and hurt Asian currencies, including the rupee, on Monday.
Traders say the Reserve Bank of India is likely to prevent any sharp falls in the rupee, while foreign inflows should also cushion any blows.
The partially convertible rupee closed at 61.77/78 per dollar, the highest closing level since November 21. It finished at 61.9250/9350 on Thursday.