Mumbai: Having hit record highs earlier in the day, Indian equity markets closed negative on Friday ahead of the release of GDP data due later today.

The benchmark Sensex closed 117.77 points, or 0.30%, lower at 39,714.20, while the NSE Nifty 50 index finished at 11,922.80, down 23.10 points, or 0.19%.

GDP data is expected to show that the economy grew 6.3% in the first three months of the year, according to a Bloomberg survey. The annual expansion in the 12 months to March 2019 likely slowed down to 6.9% - the lowest in five years.

"Near term events to be closely tracked are India's Q4FY19 GDP rate, Infrastructure output for April, and foreign exchange reserves data; will be announced today. Auto sales data for the month of May to be released on June 1, followed by RBI monetary Policy on 6th June. On global front, US-China trade wars along with rise in Oil price will determine further trend" said Hemang Jani, Head - Advisory, Sharekhan by BNP Paribas.

"Post announcement of key portfolios in newly elected government, focus to shift towards various economic reforms and policies. We continue to remain optimistic on equity markets and prefer Private banks", Jani added.

Global equities were also under pressure due to renewed concern after US President Donald Trump opened a new front in the global trade war with Mexico. Trump said a 5% tariff will be imposed on goods entering the US from Mexico.

During the day, domestic equities had surged to a record high, with Sensex hitting the 40,000-mark, while Nifty touched 12,000, but fell immediately following the announcement of cabinet portfolios of ministers in Prime Minister Narendra Modi's government.

"The nation has reposed great faith and hope in NDA 2.0. If the aspirations of the people are to be fulfilled, it is imperative that the government has to implement the next phase of reforms to lift growth by raising factor productivity. This calls for reform of the factor market: particularly land and labour reforms. NDA 2.0 has the political capital to push these reforms; what is required is the political will. Let’s hope that Mrs Sitaraman, guided by the prime minister, will rise to the occasion", V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

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