Markets continue downtrend as IT stocks bleed

Mumbai: Equity benchmarks treaded lower for the second straight day on Friday, weighed by losses in IT and bank stocks, as investors baulked at expanding their portfolios amid stretched valuations and growth concerns.

After trading on a weak note through the day, the 30-share BSE Sensex ended 215.76 points, or 0.53 per cent, lower at 40,359.41.

Similarly, the broader NSE Nifty settled 54 points, or 0.45 per cent, down at 11,914.40. During the week, the Sensex inched up 2.72 points, while the Nifty gained 18.95 points.

IT stocks came under selling pressure following reports of changes in US work visa requirements aimed at protecting American workers, traders said.

"Market is on an edge given high valuations for blue-chips, not providing a headroom for main indices to move higher trading at P/E of 26x on trailing basis.

Lack of new trigger in the coming week and focus being on India's weak GDP data to be announced next week, is impacting the market," said Vinod Nair, Head of Research, Geojit Financial Services.

Sectorally, BSE IT, teck, telecom, capital goods, bankex, industrials and consumer durables fell up to 2.21 per cent.

On the other hand, metal, power, utilities, basic materials, energy and auto gained up to 2.08 per cent.