Stocks may remain volatile as investors adopt a cautious tone ahead of events from a referendum on constitutional reform in Italy to the monetary policy reviews by the Federal Reserve and the Reserve Bank of India, he said.
The index, which had lost 92.89 points in the previous session, dropped another 329.26 points, or 1.24 per cent, to end at 26,230.66, its lowest closing since November 28. Moreover, Balkrishna Industries hit a record high of Rs 1,286 on NSE, extending its past two days surge after the company reported a robust set of numbers for the quarter ended September 30, 2016.
The 50-share NSE Nifty settled 82.35 points, or 1.01 per cent higher at 8,224.50 after shuttling between 8,234.25 and 8,139.25.
"Since morning, the market was following the rising global anxiety over todays U.S. employment data and the forthcoming Italian constitutional referendum".
Sustained foreign capital outflows also affected the market sentiment. On December 1, they sold shares worth Rs 360 crore, according to the data available with NSDL. Overseas investors withdrew a net US$2.6 billion (RM11.6 billion) from stocks as speculation Trump will take a more protectionist approach to trade also weighed on developing-nation assets.
Shanghai Composite Index was up 0.36 percent, while Japan's Nikkei was down 0.19 percent in early trade today. The BSE Midcap closed at 12199.18 and Smallcap indices closed at 12083.20, both indices ending 1% lower.
The benchmark BSE Sensex was down 172 points or 0.65 percent at 26,388 in early trade after falling slightly on Thursday to snap a four-day winning streak.
Shares of some auto makers were under pressure following drop in their sales in November on account of demonetisation of high value currency.
However, Eicher Motors, Idea Cellular, Tata Power, Bajaj Auto and UltraTech Cement gained 2.78 per cent, 0.82 per cent, 0.82 per cent, 0.72 per cent and 0.54 per cent, respectively.
Major Sensex losers were: Asian Paints, down 3.57 per cent at Rs 905.55; Maruti Suzuki, down 3.44 per cent at Rs 5,068.45; Tata Motors, down 3.37 per cent at Rs 433.05; Adani Ports, down 3.13 per cent at Rs 266.40; and HDFC, down 2.35 per cent at Rs 1,240.05.
Bajaj Auto reported sales during the month fell by 12 per cent to 2,37,757 units as against 2,70,886 units in November past year, the company said in a BSE filing.