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Sensex Poised for Weekly Fall, Drops over 100 Points

Benchmark Sensex fell over 150 points and its psychological 35,000 mark in the late afternoon trade on Friday.

The 30-share index started its week on a positive note at 103.41 points higher. However, its late Friday afternoon trade closed at 34,915.38– 0.53 percent or 187.76 points lower.

The broader 50-share NSE Nifty index also declined 0.57 percent or 61.40 points to close at 10,618.25.

The Nifty IT shed 0.57 percent or 61.40 points to trade at 10,618.25; and the Nifty Metal index was trading 1.07 percent or 39.45 points to close at 3,633.60. The two were the biggest laggards among sectoral indices.

MindTree & Wipro and Hindustan Zinc & Hindalco led the fall for both Nifty IT and Nifty Metal indices respectively.

Pharma stocks also contributed to lower indices, as the Nifty Pharma index slipped 1.66 percent or 148.85 points at 8,817.45, compared to its previous close at 8,966.30, and the Sun Pharmaceutical Industries Ltd. was 3.50 percent or 18.75 points lower to trade at 517.25, from its last close at 536.00.

Furthermore, JSW Energy, Castrol India Ltd., and Hexaware Technologies Ltd. dropped after their first-quarter results failed to please investors.

Economic Data

“Trends of the past 15 months suggest that growth stocks are making a comeback – indeed the market is detecting a new growth cycle and seems willing to back a nascent recovery in the performance of growth styles as a more sustainable outcome. We think this outperformance of growth over value will continue in 2018,” said a Morgan Stanley report released on Friday .

Morgan Stanley currently bets 6 stocks to play its ‘growth at a reasonable price (GARP)’ strategy: Bajaj Auto, Mahindra & Mahindra (M&M), ITC, Reliance Industries (RIL), Mahindra & Mahindra Financial Services (MMFS), and JSW Steel.

Some brokers stated that investors are currently waiting for the outcome of US and China’s trade talks. They added that market participants booked profits at higher levels in opening trade, and the trade talks influenced market sentiments.

Vinod Nair, Head of Research at Geojit Financial Services, said, “Market continued to fall amid weak global cues and flight of foreign funds ahead of US job data. Rupee weakened as positive US employment data might lead to FEDs monetary tightening. Mixed earnings from corporates and valuation concerns compared to other emerging markets influenced investors to book some profit.”

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