Markets succumb to last hour selling

Mumbai: Equity benchmarks were caught in a late-session bear grip on Friday as trading sentiment remained risk-averse amid global headwinds and uncertainty over the earnings front.

Investors were also cautious ahead of the release of key macroeconomic data, traders said. Building on its positive opening, the 30-share BSE Sensex crossed the 39,000-mark in afternoon trade but suffered a sudden bout of selling to end at 38,736.23, down by 86.88 points or 0.22 per cent.

Similarly, the broader NSE Nifty dropped 30.40 points, or 0.26 per cent, to 11,552.50. In the post-Budget week, the Sensex lost 777.16 points or 1.96 per cent, while the Nifty dropped 258.65 points or 2.18 per cent.

Global equities were trading flat as investors digested a slew of economic data amid heightened geopolitical and trade tensions. Domestic market participants are also tracking developments surrounding India-US trade talks, traders added.

"Volatility continued given subdued expectation on Q1 FY20 results which is increasing risk of downgrade in future earnings.

Investors remain focused on today's CPI inflation data to get cues on interest rate trajectory. Lack of stimulus to the economy and premium valuation is influencing investors to have a cautious approach in the market," said Vinod Nair, Head of Research, Geojit Financial Services.

Sectorally, BSE capital goods, telecom, oil and gas, industrials, energy, bankex and finance indices lost up to 1.22 per cent.