Sensex closes in red on global cues; Maruti up 7% on falling yen

The Indian stock markets extended losses and closed in the red tracking lower global shares ahead of pivotal monthly US payrolls data due later in the day.

Sensex closed at 18423.29, down 0.47 percent and the Nifty closed at 5553.25, down 0.39 percent.

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Recent foreign funds selling in stocks have sparked concerns of a wider pullback of flows from overseas investors. Reuters[/caption]

Recent foreign funds selling in stocks have sparked concerns of a wider pullback of flows from overseas investors who have already pumped in over $10 billion so far this year.

Bankers on Thursday sought from RBI 0.5 percent cut in their cash reserve requirement to tide over tight liquidity situation, and to help stem slide in investments.

They also sought a review of the elevated provisioning requirements, bankers told reporters after the customary pre-policy meeting with the Reserve Bank top brass.

Stocks in news

United Spirits shares closed down 3.75 percent after UK drinks group Diageo opted not to lift its offer price of Rs 1,440 as it looks to raise its stake in the company.

Bharti Airtel closed down 1.13 percent after a panel of judges at Delhi High Court set aside on Thursday the court's earlier order that had halted the execution of a government ban on the company's 3G service pacts with rival carriers.

However, Maruti Suzuki India closed up 7 percent following a depreciation in the yen, which will boost its earnings by reducing the costs of imports from Japan after the BOJ unleashed the world's most intense burst of monetary stimulus on Thursday.

Reliance Industries closed up 1.77 percent, recovering from recent falls on attractive valuations and hopes January-March earnings will improve, led by better margins in refining and petrochemical sectors.

Shares of India's sugar producers, including Shree Renuka Sugars (2.40 percent) , Balrampur Chini (3.24 percent) closed up on Friday after the government took steps to remove curbs on domestic sugar supplies. India will no longer force mills to sell sugar to the government at a discount and will not limit the amount they can sell in the open market, Food Minister KV Thomas said on Thursday.

With inputs from agencies