Indian indices ended over a percent lower on Friday dragged mainly by auto, pharma and IT stocks. Investors also didn't seem very pleased with the Economic Survey 2020-21, tabled in the Parliament by Finance Minister Nirmala Sitharaman.

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The Survey forecasts India's FY22 real GDP growth at 11 percent. The nominal GDP growth is estimated at 15.4 percent. This year's Economic Survey captures the impact of COVID-19-induced lockdown on the economy.

The Sensex ended 588 points lower at 46,286 while the Nifty fell 183 points to settle at 13,635. Broader markets, however, outperformed benchmarks with the midcap and smallcap indices down around half a percent each.

"Weakening global trend due to the concerns of speculation and slowing economic recovery has hugely impacted the cautious pre-budget domestic market. The pace of recovery in the US and Europe has slowdown, having implications on Indian exports and FII inflows. In this waning domestic trend, Budget will be the key to provide strength and perform better compared to the rest of the world. Expectations are high that the government should maintain the populist & reformist agenda of maintaining the mass sentiments, deficit discipline and growth in the difficult pandemic period," said Vinod Nair, Head of Research at Geojit Financial Services.

On the Nifty50 index, IndusInd Bank, Sun Pharma, ICICI Bank, HDFC Bank and HDFC Life were the top gainers while Dr Reddy's Maruti, Hero Moto, Tata Steel, and Bharti Airtel led the losses.

Among sectors, the Nifty Auto index fell the most, down almost 3 percent followed by Nifty IT, down 2.6 percent. The Metal and Pharma indices were also down nearly 2 percent each, however, the banking index outperformed, rising 0.7 percent for the day.

The share price of Maruti Suzuki India fell 5 percent dragging the auto index after the company missed analyst estimates for the December quarter earnings. Maruti Suzuki posted a 24.1 percent on-year growth in net profit at Rs 1,941.4 crore for the quarter ended December 2020, but the operational performance of the auto major missed Street estimates.

Dr Reddy's also shed over 5 percent after the firm's Q3 earnings did not meet analyst expectations.

(Edited by : Pranati Deva)

First Published:Jan 29, 2021 3:35 PM IST