The Sensex closed 53 points lower at 79,996, led by HDFC Bank. The Nifty, which represents a broader range of stocks, continued to rise and closed 22 points higher at 24,324, with most of the gains coming in the last 30 minutes of trade.
According to brokers, if HDFC Bank shares had not fallen, the Sensex would have gained more than 500 points. Despite the fall in HDFC Bank shares, the Sensex had its best week in more than six months and gained for the fifth consecutive week.
Of the 30 Sensex stocks, 17 gained. SBI shares were the top gainer, rising 2.5%, while Reliance Industries gained 2.3% to hit a new all-time high of Rs 3,197. Raymond shares rallied 10% on Friday after the textile giant said it would demerge its real estate business.
Rishikesh Yedve of Asit C Mehta Investments said, “The broader market outperformed the benchmarks, with Nifty mid-cap and small-cap indices gaining over 0.5%. Technically, Nifty managed to defend the 24,200 support level on a closing basis, which is a sign of strength. As long as the index holds this support, it may try to test the 24,500-24,600 levels.”
In Friday's session, HDFC Bank lost the gains it had made earlier in the week after reporting its shareholding data for June-end. The increased scope for foreign investors had raised expectations that the stock's weighting in the Morgan Stanley Emerging Markets Index would increase, attracting more passive foreign funds. Traders are now awaiting management commentary, which is expected during its quarterly results later this month.