BSE Sensex fell on Friday to snap a 7-day winning streak, weighed down by a 3.2 percent decline in Reliance Industries (RIL), over Petroleum Ministry corporate espionage charges, and as sentiment for blue chips was hit after foreign investors sold index derivatives.
The benchmark BSE index fell 0.78 percent for the day, while it gained 0.47 percent for the week.
The broader NSE index ended 0.69 percent lower but marked a weekly gain of 0.32 percent.
Market Outlook by Vinod Nair, Head-Fundamental Research, Geojit BNP Paribas Financial Services
Market has shown its concern as we have moved fast, being back to all-time high in 7 trading days. Since expiry is next week, market is trying to become lighter. Also added by the fact that union budget which is the key trigger will be conducted post expiry. We maintain our view that Government is expected to increase Infrastructure spending, better platform and incentives for manufacturing. This will develop positive momentum towards Infra, PSUB and Manufacturing sectors. Whether all this expectation will be answered in the budget or will unwrap as a continuous reforms, only time will tell.
Market Wrap Up by Alex Mathews, Head Research, Geojit BNP Paribas Financial Services
Today market opened with a negative note and traded sideways throughout the day market participant’s experienced highly volatile movements. The Nifty volatility index, India VIX stood at 21.2675 up around 4.26%. Volatility is likely to increase in the days to come ahead of the February expiry and union budget.
Nifty today closed at 8833, down around 61 points. The market breadth remained flat as there were seen 1492 stocks advancing against 1428 stocks declining.
But the Mid cap and small sectors were seen outperforming the broader markets, ended up around 0.03% and 0.45% respectively.
The major losers in the sectoral front were Oil & gas and IT, which closed down around 1.79% and 1.24% respectively whereas the gainers were Realty and FMCG which ended up around 0.91% and 0.75% respectively.
In the stocks’ front, selling was seen in Reliance and ICICI Bank, closed down around 3.24% and 2.39%. On the other end the gainers were BHEL and Bank Baroda which closed up around 5.42% and 2.89% respectively.
The FIIs were net buyers in the capital market segment, bought shares worth Rs 1542.70 crore on Thursday, 19 February 2015. On the other hand the DIIs were net sellers on 19 February 2014, sold shares worth Rs 195.74 crore as per the provisional data from the stock exchanges.
The European markets were little changed as the euro area finance ministers prepared to meet in Brussels for seeking agreement on Greece’s bailout funding. The US index futures were trading lower.
BSE Sensex logs 1st drop in 8 days, down 230 pts as RIL tumbles 3 pct
(PTI) Logging its first drop in eight days, the benchmark Sensex today slipped by 230.86 points to end at 29,231.41 led by profit-booking in bluechips, including RIL.
Traders said the market was in an “over-bought” position following huge positions built up on optimism over the forthcoming Budget and hopes of faster reforms. With the BSE Sensex rising by a hefty 1,234.85 points in past seven days, some money was taken off the table, they added.
Shares of Reliance Industries (RIL) today witnessed selling pressure, falling over three per cent, after Delhi Police yesterday had detained a RIL staffer in connection with alleged official document theft in the oil ministry.
The BSE Sensex opened lower at 29,446.21 and dropped to the day’s low of 29,178.26 and finally settled with a loss of 230.86 points, or 0.78 per cent, at 29,231.41. Intra-day, the gauge touched a high of 29,462.09 in early trade.
The 50-share NSE Nifty moved down by 61.70 points, or 0.69 per cent, to finish at 8,833.60 after hovering between 8,816.30 and 8,899.95.
Despite today’s fall, both the key indices Sensex and Nifty posted a gain on weekly basis.
Foreign Portfolio Investors (FPIs) picked up shares worth a net Rs 1,542.70 crore yesterday, as per provisional data.
Sector-wise, the BSE Oil & Gas index suffered the most by losing 1.79 per cent, followed by IT index by 1.24 per cent.
Teck index (1.21 per cent), Metal index (0.51 per cent), Banking index (0.47 per cent), Capital Goods index (0.22 per cent) and Auto index (0.08 per cent) also reported losses.
Globally, Japan’s Nikkei ended higher and European markets were little changed as euro-area finance ministers prepared to meet in Brussels to seek agreement on Greece’s bailout funding.