India's benchmark stock indices extended losses through midday on Friday, dragged down by heavyweights HDFC twins after MSCI said it would add HDFC Bank Ltd. to MSCI Global Standard Indices after the merger with HDFC Ltd. The inclusion will lead to no incremental inflows but outflows of up to $200 million, according to Nuvama Alternative & Quantitative Research.
Stocks from the non-banking financial companies, media, and private banking sectors fell while auto and public sector banks advanced. The Nifty was trading below the 18,200 level, while the Sensex dropped below the 61,200 mark.
Asian stocks were mixed and the dollar weakened as investors weighed the prospect of the Federal Reserve reversing its policy-tightening campaign ahead of the U.S. jobs data due later Friday.
U.S. and European equity futures and stocks in Hong Kong and Australia advanced. Mainland China's shares were lower. The bourses in Japan and South Korea were closed for a holiday.
As of 12:05, the S&P BSE Sensex fell 581 points, or 0.94%, to 61,167.86, while the NSE Nifty 50 declined 151 points, or 0.83%, to 18,104.95.
Bharti Airtel Ltd., HDFC Bank Ltd., HDFC Ltd., Infosys Ltd., and Tata Steel Ltd. weighed on the Nifty 50.
Axis Bank Ltd., ICICI Bank Ltd., ITC Ltd., Larson & Toubro Ltd., and Titan Co. were among the gainers in the index.
The broader market indices were trading lower, with the S&P BSE MidCap falling 0.46% and the S&P BSE SmallCap easing 0.48% by midday session on Friday.
Fifteen out of the 20 sectors compiled by BSE declined, while five advanced.
The market breadth was skewed in favour of the buyers. About 1,368 stocks rose, 1,939 declined, and 148 remained unchanged on the BSE.
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