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Stock benchmarks had a hard landing on Friday, reflecting weak global leads, as the US Fed signalled a rate hike next month.
Throughout, the market was under the grip of volatility as participants were not sure which way to move.
The 30-share Sensex fell 79 points, or 0.22 per cent, to close at 35,158.
The broader NSE Nifty lost 13 points, or 0.12 per cent, to end at 10,585.
In the Sensex pack, Bharti Airtel was the biggest loser, falling 2.45 per cent, after Moody's Investors Service placed the company's rating on review for downgrade following low levels of profitability and expectations of weak cash flow.
A softer Brent rubbed off on shares of aviation companies.
InterGlobe Aviation and SpiceJet stocks rose up to 3 per cent.
Scrips of oil marketing companies like HPCL, BPCL and Oil India too rallied up to 4.70 per cent.
Brent oil dropped under $70 for first time since April.
So, what moved the market on Friday
1.
Fed policy: The US Federal Reserve left interest rates on hold at 2-2.25 per cent but indicated that it will hike next when it meets in December.
A higher interest regime in the US means flight of capital from riskier assets from emerging markets, including India.
The central bank pointed to a healthy economy that was dampened only by a dip in the growth of business investment.
2.
Lacklustre Asian markets: Asian shares pulled back from one-month high as the US Fed remained on track for a rate increase this year.
Hong Kong's Hang Seng fell more than 2 per cent while Japan's Nikkei was down 1 per cent.
3.
Upcoming elections: What added to the uncertainty level was a string of state elections coming up this month and next.
Investors are also keeping a close eye on the mother of all elections, that is the general elections in 2019 when Narendra Modi will face a litmus test.
4.
Moody’s sees growth slowdown: India’s economic growth is expected to moderate to 7.3 per cent in 2019 and 2020, ratings company Moody’s said, warning of a credit squeeze for non-bank financial entities.
“Downside risks from a prolonged liquidity squeeze for non-bank financial institutions, which could lead to a sharper slowdown in their credit provision, remain,” Moody’s said on Thursday.
5.
Job worries cast a shadow: Unemployment rate rose to a two-year high of 6.9 per cent in the month of October, the Times of India reported citing data from Centre for Monitoring Indian Economy.
What is more disheartening is the labour participation rate fell to 42.4 per cent in October, the lowest since January 2016, the daily further said.
Expert-speakVinod Nair, Head of Research, Geojit Financial Services Ltd for your perusal
"Market was rangebound due to weak global cues as Fed hinted a rate hike next month.
Investors are awaiting CPI on Monday and is expected to come down slightly due to recent cut in fuel taxes and fall in oil prices.
Additionally, upcoming state elections will be a key trigger to monitor while fall in crude oil prices and bond yields along with appreciation in the rupee will provide support to the market."
