The Indian benchmarks ended the day on a sharply negative note on May 31, 2013. After opening with a gap down, they started losing ground consistently. Towards the last hour of trade the selling gained further momentum. The market plunged on Friday as the fourth quarter GDP reading of 4.8 percent, while on expected lines, reinforced concerns that a meaningful recovery in the economy was still some way off. Economists, bankers and industrials said the latest GDP reading indicated that the worst may be over for the economy, but did not see growth picking up any time soon. Also, with the RBI again warning of inflation and current account, expectations of a steep cut in policy rates at the June meet is receding. Again, beginning of a new derivative settlement also helped bears to create a fresh position. All these led the Sensex to close at the level of 19763.20 i.e. down by 452.20 points and the Nifty to close at the level of 5985.95 i.e. down by 138.10 points. The midcap index and the small cap index closed in red with a loss of nearly one and three-tens of a percentage point and one and a half percentage point respectively. On the sectoral front, all indices, except one, closed in red. The IT Index was the only gainer with the gain of nearly nine-tens of a percentage point. On the other hand the Realty Index closed as the biggest loser with a loss of nearly three and two-tens of a percentage point. This was followed by the Oil and Gas Index which closed with the loss of nearly two and seven-tens of a percentage point.
Further, the market breadth closed negative as two stocks were seen advancing against seven declining stocks.
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