Caution ahead of F&O expiry depress equity markets

According to market observers, a weak rupee, along with recent surge in crude oil prices and heavy selling in banking, consumer durables and capital goods stocks weighed heavy on the key indices.

Index-wise, the wider Nifty50 on the National Stock Exchange closed at 10,570.55 points, down 43.80 points or 0.41 per cent from the previous close.

Similarly, the barometer 30-scrip Sensitive Index (Sensex) of the BSE closed in the red. It opened at 34,593.17 points, closed at 34,501.27 points, down 115.37 points or 0.33 per cent.

The Sensex touched a high of 34,631.27 points and a low of 34,400.56 points during the day. The BSE market breadth was bearish with 1,794 declines and 867 advances. Market breadth on the NSE too was bearish on Wednesday.

In the broader market segment, the S&P BSE mid-cap index closed lower by 0.52 per cent and the small-cap index by 0.72 per cent.

“Markets ended lower on Wednesday as selling was seen through the day. The recent rise in crude oil prices and cautiousness ahead of April derivatives expiry due on Thursday, 26 April, 2018 seemed to have affected investors,” Deepak Jasani, Head, Retail Research, HDFC Securities, told IANS.

Abhijeet Dey, Senior Fund Manager, Equities, BNP Paribas Mutual Fund said: “Recent firmness in crude prices, rising bond yields in the US and the expiry of derivatives contracts this week, all contributed to the volatility in the markets.” 

“Asian stocks tumbled across the board while US stocks witnessed selling pressure after the 10-year US Treasury yield briefly touched the psychologically important three per cent level for the first time in four years,” he said.

Dhruv Desai, Director and Chief Operating Officer of Tradebulls said: “Markets traded lower as global markets were in negative territory and investors booked profits amid weakened global sentiment.”

Sector specific trade, saw IT stocks’ rise due to a weak rupee which fell by 53 paise to 66.91 against the US dollar on Wednesday from its previous close at 66.38. 

In terms of investments, provisional data with the exchanges showed that FIIs sold scrip worth Rs 304.79 crore, while the domestic institutional investors purchased stocks worth Rs 435.98 crore.

Sector-wise, the S&P BSE IT index rose by 163.05 points, followed by Teck (technology, media and entertainment) index by 71.36 points and telecom stocks which inched up by 9.26 points.

On the other hand, the S&P BSE banking index declined by 301.59 points, cosumer durables index by 270.76 points and capital goods index by 231.99 points.

The major gainers on Sensex were: Bharti Airtel, up 3.37 per cent at Rs 419.80; Tata Consultancy Services (TCS), up 2.43 per cent at Rs 3,467.90; Mahindra & Mahindra (M&M), up 1.88 per cent at Rs 854.25; Infosys, up 0.61 per cent at Rs 1,160.90; and Power Grid, up 0.58 per cent at Rs 207.20 per share.

The top losers were: Tata Steel, down 2.01 per cent at Rs 586.20; ICICI Bank, down 1.86 per cent at Rs 278.90; ONGC, down 1.67 per cent at Rs 179.55; Tata Motors (DVR), down 1.65 per cent at Rs 185.15; and Dr. Reddy’s Lab, down 1.46 per cent at Rs 2,124.75 per share. (IANS)