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Global cues, outflow of foreign funds pull Indian equities lower

Mumbai, Feb 27: Broadly negative global cues, outflow of foreign funds and heavy selling pressure witnessed in banking, automobile and capital goods stocks, subdued investors’ sentiments and pulled the Indian equities markets lower on Monday. Besides, investors were cautious ahead of macro-economic data points, such as the second advance estimates of tiol income, 2016-17, along with the quarterly estimates of GDP for the third quarter of 2016-17, slated to be released on Tuesday.

In addition, the Ministry of Commerce and Industry will release the Index of ECI (eight core industries) figures for January, 2017 on February 28.

The wider 51-scrip Nifty of the tiol Stock Exchange (NSE) edged down by 42.80 points or 0.48 per cent to 8,896.70 points.

The barometer 30-scrip sensitive index (Sensex) of the BSE, which opened at 28,910.50 points, closed at 28,812.88 points — down 80.09 points or 0.28 per cent, from the previous close at 28,892.97 points.

The Sensex touched a high of 28,961.83 points and a low of 28,791.19 points during the intra-day trade.

The BSE market breadth was tilted in favour of the bears — with 1,520 declines and 1,259 advances.

In contrast, the BSE mid-cap rose by 0.01 per cent and small-cap index was up by 0.16 per cent.

On February 23, the benchmark indices closed on a flat-to-positive note as inflow of foreign funds and rupee appreciation buoyed investors’ sentiments. The NSE Nifty rose by 12.60 points or 0.14 per cent to close at 8,939.50 points, and the BSE Sensex was up 28.26 points or 0.10 per cent at 28,892.97 points.

“Markets ended lower on Monday after six sessions of gains. The Nifty closed lower by 0.5 per cent,” Deepak Jasani, Head – Retail Research, HDFC Securities, told IANS.

“Major Asian markets too have ended on a negative note. However, European indices like FTSE 100 and DAX traded higher.”

According to other market observers, Reliance continued to be a performer, while other major counters in the markets witnessed heavy selling pressure.

“Telecom stocks saw selling pressure as they geared up to take on Reliance Jio,” Vijay Singhania, founder and Director of brokerage firm Trade Smart Online, told IANS.

“Banks had witnessed a spectacular run over the last one month and witnessed some profit booking.” Singhania added that the rupee hit a three-month high on Monday as other Asian countries also strengthened against the US dollar.

The Indian rupee appreciated by 13 paise to 66.70 against a US dollar from its previous week’s close of 66.83 to a greenback.

In terms of investments, the provisiol data with exchanges showed that foreign institutiol investors (FIIs) sold stocks worth Rs 145.55 crore, whereas the domestic institutiol investors (DIIs) purchased scrip worth Rs 263.79 crore.

Commenting on the sector-specific movement, Dhruv Desai, Director and Chief Operating Officer of Tradebulls, said: “IT sector stocks traded with mixed sentiments due to profit booking, while banking, pharma, auto, oil-gas and media-entertainment stocks traded with mixed sentiments.”

“Cement and power sector stocks traded with bearish sentiments due to selling pressure.” Sector-wise, the S&P BSE banking index plunged by 331.37 points, followed by the automobile index, which slipped by 215.40 points, and the capital goods index, which fell by 105.48 points.

On the other hand, the S&P BSE oil and gas index surged by 93.44 points, the energy index rose by 61.61 points, and the healthcare index edged up by 41.17 points.

Major Sensex gainers on Monday were: Reliance Industries, up 4.74 per cent at Rs 1,238.60; Hindustan Unilever (HUL), up 0.95 per cent at Rs 866.50; Lupin, up 0.72 per cent at Rs 1,463.80; Wipro, up 0.67 per cent at Rs 488.80; and Coal India, up 0.46 per cent at Rs 330.

Major Sensex losers were: Axis Bank, down 3.56 per cent at Rs 508.85; Power Grid, down 3.14 per cent at Rs 192.85; Bharti Airtel, down 2.83 per cent at Rs 355.70; ICICI Bank, down 1.97 per cent at Rs 278.85; and Maruti Suzuki, down 1.38 per cent at Rs 5,951.55. (IANS)

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Ankur Kalita