Market benchmark BSE Sensex plunged by 464 points or 1.33 per cent to close at 34,315.63 points due to losses in energy, IT and financial stocks on liquidity worries even as RBI eases norms to improve fund flows.
The broader NSE Nifty too fell around 150 points to crack below the 10,400-mark as 30 of its constituents declined. The 50-share NSE Nifty plunged 149.50 points, or 1.43 per cent, to end at 10,303.55.
Index major Reliance Industries plunged around 7 per cent in day trade despite record earnings in the second quarter. The stock later closed down by 4.11 per cent on BSE on concerns about decline in its gross refining margins.
It earned USD 9.5 on turning every barrel of crude oil into fuel as compared to a gross refining margin of USD 12 per barrel. The GRM was also lower than USD 10.5 per barrel earning in the first quarter.
Housing finance major HDFC declined 4.32 per cent on liquidity concerns even as the RBI announced steps to improve fund flows to NBFCs.
The RBI permitted banks to use government securities equal to their incremental outstanding credit to NBFCs, over and above their outstanding credit to them as on October 19, to be used to meet liquidity coverage ratio requirements. It also increased single borrower exposure limit to non-infra NBFCs to 15 per cent from 10 per cent.
"Markets were volatile on concerns of slowing world economy due to lingering trade wars between the US & China. The FOMC minutes released on Wednesday, indicated that US policy makers will go-ahead with rate hike as early as December," said Vinod Nair, Head Of Research at Geojit Financial Services.
"RIL reported its quarterly numbers which reflected decline in refining margins. Infosys numbers were good though margins were a disappointment," Sanjeev Zarbade, Vice President Research , Kotak Securities said.
Yes Bank was the worst performer in the Sensex pack, losing a whopping 6.06 per cent, after the RBI refused to grant more time to its long serving CEO and MD Rana Kapoor and asked the private sector lender to appoint his successor latest by February 1, 2019.
Indiabulls Housing Finance, Dewan Housing Finance, IL&FS Engineering and Construction dropped up to 16.55 per cent.
IT stocks declined due to concerns over tightening H1-B visa norms. Infosys dropped 3.11 per cent and TCS by close to 1 per cent. Mindtree plunged by over 16 per cent as it highlighted "some challenges in the global business environment".
Stocks of automakers too faced the heat on fears of lower sale this festive season due to prevailing lower liquidity from NBFCs.
Other laggards were HDFC Ltd 4.32 per cent, Hero MotoCorp 3.70 per cent, Infosys 3.11 per cent, Tata Motors 2.46 per cent, M&M 2.44 per cent, Axis Bank 2.16 per cent, Maruti Suzuki 1.72 per cent, IndusInd Bank 1.70 per cent, Bajaj Auto 1.49 per cent, Asian Paint 1.45 per cent, ONGC 1.26 per cent,
Coal India 1.23 per cent, NTPC 0.55 per cent, TCS 0.55 per cent, HDFC Bank 0.46 per cent, Bharti Airtel 0.43 per cent, Wipro 0.29 per cent, L&T 0.26 per cent, Tata Steel 0.19 per, PowerGrid 0.16 per cet and SBI 0.11 per cent.
Among the winners, Sun Pharma was the top performer, climbing 2.52 per cent, followed by Kotak Bank 1.74 per cent.
Vedanta Ltd also rose 1.51 per cent, Adani Ports 1.18 per cent, ITC Ltd 0.73 per cent and ICICI Bank 0.06 per cent.
Sector-wise, the BSE IT emerged worst performer by crashing 2.60 per cent, followed by teck (2.41 per cent), Auto 1.42 per cent, oil&gas (0.76 per cent), infrastrucgure 0.75 per cent, consumer durables (0.68 per cent), capital goods (0.64 per cent), healthcare (0.62 per cent), power (0.54 per cent), realty (0.45 per cent), bankex (0.43 per cent) and PSU (0.16 per cent).
In the broader markets, the small-cap index fell 1.72 per cent and the mid-cap gauge shed 0.22 per cent.
The benchmark indices closed with losses for the week. The Sensex lost 417.95 points, while the NSE Nifty fell 168.95 points, during the period.
Cues from other Asian markets were mixed with early losses were erased as China shares rebounded in afternoon trade after government statements sought to bolster market confidence.
China's banking and insurance regulator also said on Friday that it may allow bank wealth management subsidiaries to invest directly in stocks.
Elsewhere in Asia, Japan's Nikkei fell 0.56 per cent, Hong Kong's Hang Seng shed 0.38 per cent, while Taiwandown 0.46 per cent. Shanghai Com;posiote Index, rebounded to end 2.58 per cent higher.
European markets turned negative after a higher opening. Key indices such as Frankfurt's DAX was down 0.44 per cent and Paris CAC 40 too shed 0.80 per cent. London's FTSE moved down 0.08 per cent in late morning deals.
