Equity markets close flat; negative global cues subdue sentiments

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SME Times News Bureau | 28 Oct, 2016
The equity markets ended on a flat-to-positive note on Friday, as negative global cues, foreign fund outflow and profit booking subdued investors' sentiments.

However, lower level buying support due to healthy quarterly results and bargain hunting arrested the fall.

The wider 51-scrip Nifty of the National Stock Exchange (NSE) inched up by 22.75 points or 0.26 per cent to 8,638 points.

The barometer 30-scrip sensitive index (Sensex) of the BSE, which opened at 27,983.14 points, closed at 27,941.51 points -- up 25.61 points or 0.09 per cent from the previous close at 27,915.90 points.

The day's trade also marked the end of Hindu Samvat 2072 year. Till date in Samvat 2072, the barometer index gained 2,074.56 points or 8.02 per cent, whereas NSE Nifty swelled by 813 points or 10.38 per cent.

The Sensex touched a high of 28,000.14 points and a low of 27,789.84 points during the intra-day trade.

In contrast, the BSE market breadth was tilted in favour of the bulls -- with 1,556 advances and 1,094 declines.

On Thursday, the equity markets closed flat, even as short covering, along with bargain hunting, helped the key indices to pare initial losses.

The barometer index declined by 79.39 points or 0.29 per cent to 27,915.90 points, while the NSE Nifty closed unchanged at 8,615.25 points.

"Healthy quarterly results and value buying marginally lifted the equity markets after the initial downturn. Recovery in Tata Group's stocks also helped broad market sentiments, while PSUs held firm awaiting stake sale nod," Anand James, Chief Market Strategist, Geojit BNP Paribas Financial Services, told IANS.

"However, weak global markets, anxiety over a flurry of key central banks' meetings scheduled next week, lower crude oil prices and caution over upcoming release of US GDP data capped gains."

According to Dhruv Desai, Director and Chief Operating Officer of Tradebulls: "CNX Nifty traded with volatile sentiments due to short covering at lower levels from traders."

"IT and banking stocks traded with mixed sentiments. Pharma, auto, oil-gas and textile stocks traded firm on buying support."

Desai pointed out that aviation, media-entertainment, FMCG and power stocks traded firm on short covering.

"Cement stocks witnessed resistance at higher levels due to profit booking," Desai added.

"Volatile USD/INR futures prices bring volatility in Indian equity markets as well."

The foreign institutional investors (FIIs) remained net sellers in the Indian equity markets ahead of key event risks such as the respective meetings of US Fed's FOMC (Federal Open Market Committee), BoE (Bank of England) and BoJ (Bank of Japan) scheduled for next week.

Besides, foreign investors were also cautious ahead of the release of US Q3 (third quarter) GDP data.

In terms of investments, provisional data with the stock exchanges showed that the FIIs sold stocks worth Rs 777.58 crore, whereas the domestic institutional investors (DIIs) invested Rs 1,124.08 crore.

Major Sensex gainers during Friday's trade were: Tata Motors, up 2.68 per cent at Rs 535.85; Bajaj Auto, up 2.54 per cent at Rs 2,834.65; Coal India, up 2.33 per cent at Rs 324.40; Tata Steel, up 1.85 per cent at Rs 404.45; and Dr. Reddy's Lab, up 1.24 per cent at Rs 3,360.20.

Major Sensex losers were: ICICI Bank, down 2.41 per cent at Rs 277.10; Cipla, down 1.74 per cent at Rs 574.45; Asian Paints, down 1.51 per cent at Rs 1,070; Bharti Airtel, down 1.36 per cent at Rs 318.65; and ONGC, down 0.91 per cent at Rs 287.90.