Mumbai: The Sensex and Nifty closed in the red on Friday, pressured by heavy selling in financial and banking stocks amid negative cues from Asian peers.
The 30-share BSE Sensex ended 143.36 points, or 0.39 per cent, lower at 36,594.33. The broader NSE Nifty shed 45.40 points, or 0.42 per cent, to close at 10,768.05.
According to traders, domestic benchmarks followed the negative trend in other Asian equities as concerns over a fresh spike in COVID-19 cases and its impact on economic recovery weighed on investor sentiment.
Axis Bank was the top loser in the Sensex pack, skidding 3.14 per cent, followed by IndusInd Bank, Titan, HDFC, ICICI Bank, ONGC and HDFC Bank.
On the other hand, Reliance Industries, Sun Pharma, HUL and Bharti Airtel were amon the gainers, rising up to 2.95 per cent.
IT bellwether TCS rose 0.78 per cent, a day after it reported a 13.8 per cent decline in June quarter consolidated net profit at Rs 7,008 crore on revenues being impacted by the coronavirus crisis.
The company said it expects revenues to touch pre-COVID-19 levels only by the January-March quarter of this fiscal.
During the week, Sensex advanced 572.91 points or 1.59 per cent, while Nifty rose 160.70 points or 1.51 per cent.
"FPIs sold equities worth USD 261 million over the past five trading sessions, while DIIs sold USD 106 million worth of equities in the same period. We are now beginning to see some fatigue coming into the market as reflected by the selling by FPIs and DIIs.
"Also, the ongoing earnings season will be one of the most weak ones in many years. In view of this, for short term investors, it makes sense to remain cautious," said Sanjeev Zarbade, VP PCG Research, Kotak Securities.
Sector-wise, BSE bankex, finance, consumer durables, capital goods, utilities and basic materials indices fell up to 2.22 per cent on Friday. Energy, telecom, healthcare and realty indices rose up to 2.29 per cent.
Broader BSE mid-cap and small-cap indices fell up to 0.72 per cent.
Asian markets slipped into the negative territory on concerns over rising COVID-19 cases.
Bourses in Shanghai, Hong Kong, Tokyo and Seoul ended with significant losses, while stock exchanges in Europe started on a positive note.
The number of coronavirus cases around the world has crossed 1.22 crore and the death toll has topped 5.54 lakh.
In India, the number of infections has spiked to 7.93 lakh, with 21,604 fatalities.
Meanwhile, international oil benchmark Brent crude futures slipped 2.08 per cent to USD 41.47 per barrel.
The rupee weakened by 21 paise to close at 75.20 against the US dollar.