Continuing worries over the impact of demonetisation on growth and profit booking by traders along with global weakness pulled the market down on Friday. While 50-share index Nifty was trading 0.94 percent down at 8,115.65 (10.45 am), 30-share index Sensex was trading at 26,319.42, down 0.91 percent.
Profit booking by traders along with selling in mid and small caps were the major reasons behind the fall. Shares of Eicher Motors were leading the race of winners with 1.45 percent rise in the morning trade followed by Coal India, Tech Mahindra, HCL Tech and Tata Power. Reports of dividing Coal India into seven parts prompted buying interest from investors, pushing up the company's shares.
Meantime, BPCL was the major loser in the morning trade with 2.85 percent loss followed by Kotak Mahindra, HDFC, Dr Reddys Labs and IndusInd bank.
Market breadth turned negative in the early morning trade with all sectoral indices trading in the red. Banking index was the major drag on the market along with auto, capital goods and consumer durables among others. Technology and infra stocks also came under pressure with some buying interest seen in oil stocks.
Analysts were of the view that emerging markets were unlikely to do well in the near-term due to a stronger dollar and rise in US government bond yields. Huge outflow of foreign institutional investors' (FII) money could be on the cards going ahead, they said.
Meantime, domestic investors remained worried over the impact of demonetisation on GDP growth. Auto sales for November plunged owing to cash crunch in the system. However, experts opined that OPEC deal on oil would not impact current account deficit numbers of India for now.
Globally, Asian indices mostly traded in the red on anticipation of adoption of new fiscal policies by Donald Trump administration going ahead.
Rupee remained unchanged in the morning trade and was ruling at 68.34 per dollar.