A fall in the rupee’s exchange rate against the dollar and a softening in global markets also weighed on the trading sentiment.
The 30-share BSE Sensex closed 20.46 points, or 0.03 per cent, lower at 58,786.67 points in volatile trade on the last trading day of the week. Similarly, the Nifty of the National Stock Exchange slipped 5.55 points, or 0.03 per cent, to end at 17,511.30.
Titan was the biggest loser in the Sensex shares with a fall of 1.39 percent. Apart from this, HDFC, Axis Bank, Kotak Bank, HCL Tech and Tech Mahindra were also in the red.
On the other hand, gainers include Asian Paints, State Bank of India, Mahindra & Mahindra, TCS, Bajaj Finserv and ICICI Bank. They gained up to 3.25 percent.
Vinod Nair, Head of Research, Geojit Financial Services, said, “Domestic markets closed almost flat with a weak trend in global markets. The market is waiting for the inflation data for India and the US.
“Losses in financial and IT sectors weighed on the indices, while gains in realty, auto and metal stocks supported support from mid and small companies,” he said.
However, on a weekly basis, the Sensex gained 924.31 points, or 1.60 per cent, while the Nifty gained 273.50 points or 1.59 per cent.
Shrikant Chauhan, Head of Equity Research (Retail), Kotak Securities said that the domestic equity markets were overall bullish this week due to easing of concerns over the novel coronavirus form Omicron. “In the near-term, the US Federal Reserve’s upcoming meeting of the market will watch the stance on reducing the bond buying program and key policy rates,” he said.
In other Asian markets, Shanghai Composite Index in China, Japan’s Nikkei, South Korea’s Kospi and Hong Kong’s Hang Seng remained in losses.
Major markets in Europe had a declining trend in afternoon trade.
Meanwhile, international oil benchmark Brent crude rose 0.39 per cent to $74.71 per barrel.
The rupee traded lower by 18 paise to settle at a 16-month low of 75.78 against the US dollar.
Foreign institutional investors continued selling as per stock market data and they sold shares worth a net Rs 1,585.55 crore on Thursday.