Weak Asian cues ahead of a crucial U.S. jobs report due out later in the global trading day and domestic data showing slowing services sector growth dragged the Indian market lower for a second consecutive session on Friday.
The seasonally adjusted HSBC Markit Business Activity Index, based on a survey of over 400 companies, fell to 55 in May from 59.2 in the previous month, with the current sequence of growth extending to twenty-five months. A reading above 50 suggests expansion in the private sector.
The benchmark 30-share Sensex washed out its early gains in the afternoon before ending 118 points or 0.64 percent lower at 18,376, with 22 of its components declining. The broader Nifty index fell by 34 points or 0.61 percent to 5,517 and the BSE mid-cap index slipped 0.34 percent while the small-cap index closed virtually unchanged. The market breadth was slightly negative, with declining shares outpacing gaining ones by 1485 to 1306 shares on the BSE.
Among the prominent decliners, mortgage lender HDFC fell 3 percent after the National Housing Bank said it would introduce some provisioning against standard good assets of housing finance companies. Metal stocks such as Tata Steel, Sterlite, Jindal Steel and Hindalco Industries fell between 0.2 percent and 2.6 percent owing to weakness in metal prices on the London Metal Exchange overnight.
Tata Motors extended its recent losses to end 2.3 percent lower after posting a 10 percent rise in May sales. Reliance Industries declined 1.7 percent after the annual general meeting on saying that it plans to expand into new business areas. SBI, ITC, TCS, DLF, BHEL and Jaiprakash Associates ended down by 1-2 percent. FMCG player Hindustan Unilever eased 0.8 percent on profit taking after climbing 3.5 percent in the previous session.
ADAG stocks witnessed strong buying after yesterday's plunge on the back of a favorite court ruling in the 2G scam case. Reliance Communication climbed 4 percent, Reliance Capital rose 2.6 percent, Reliance Power added 2 percent and Reliance Infrastructure rose 0.9 percent.
Infosys and Wipro posted modest gains, automaker such as Bajaj Auto, Maruti Suzuki and Mahindra & Mahindra rose by 0.3-1.0 percent, and engineering & construction giant closed up 2.2 percent.
Sun TV Network, which plunged 28 percent a day before, climbed 4.2 percent after the broadcasting firm denied that it played a vital role in the 2G spectrum scandal. Group firm SpiceJet closed up 2.2 percent after tumbling 16 percent in the previous session.
Titan Industries edged up 0.3 percent, a day after the watch-to-jewelery major said it would merge its wholly-owned subsidiary Titan Properties with itself. Maxwell Industries soared 5.8 percent ahead of a board meet to consider business restructuring.
Coal India fell 2.8 percent on fears that it will have an adverse impact on coal production because of a recent order from the environment ministry. Monsanto India plunged 6.1 percent after it denied delisting talk. Clutch Auto slumped 6.6 percent on profit taking after climbing 43 percent in the past two sessions.
Elsewhere, the other major Asian stock markets closed mostly lower on Friday, with the Chinese market bucking the downtrend, as investors pared long positions ahead of the all-important May jobs report that is likely to show employers hired fewer workers in May.
With Wednesday's surprisingly weaker ADP report sending world-wide stocks tumbling a day before, investors pared expectations for the non-farm payroll report. Moody's warning late Thursday that it may place the U.S. government's Aaa rating under review for a possible downgrade also dented sentiment to some extent.
European stocks were modestly higher, while the U.S. index futures pointed to a slightly lower start. Crude prices were slightly lower below $100 a barrel as recent weak economic data and high crude stockpiles discouraged fresh buying despite a weak U.S. dollar.
For comments and feedback contact: editorial@rttnews.com
May 08, 2026 15:50 ET Manufacturing and services sector survey results and labor market data from main economies were the highlight on the economics news front this week. Factory orders and jobs report dominated the news flow in the U.S. Similarly, industrial production data from German garnered attention in Europe. In Asia, purchasing managers’ survey results from China and the central bank decision from Australia were in focus.