Logging its third straight weekly fall, the BSE Sensex slipped by 214 points to end at 27,011.31, while NSE Nifty ended below the 8,200-mark on account of declines in blue-chips as the monthly derivative contract expired today.
Across-the-board selling on the last day of April series derivative contracts, MAT worries, disappointing Q4 results so far and sluggish global cues pulled down markets.
Market Outlook by Vinod Nair, Head-Fundamental Research, Geojit BNP Paribas Financial Services
Profit booking led with expiry and negative flow from FED has impacted the market today. Over the medium-term, flow from FIIs (who are net sellers today), extent of downgrading FY16 earnings and news from Budget session will decide the trend. A productive budget session will provide some support for the market, as Government expects to pass the land bill and GST during the ongoing session which ends on 13th May.
Participants were seen offloading their long positions in Futures and Options (F&O) segment instead of carrying them forward to the next May series, brokers said.
The BSE Index had closed at 26,908.82 on January 7.
The 50-share NSE Nifty tumbled below the 8,200-level by falling 58.25 points or 0.71 per cent to close at 8,181.50. During the session, it moved between 8,229.40 and 8,144.75.
Meanwhile, the rupee fell by 45 paise to 63.75 levels (intra-day) against the US dollar on capital outflow worries.
Delay in land acquisition bill too hurt sentiment and accelerated selling by foreign investors.
The BSE 30-share barometer after resuming a shade higher at 27,242.05 fell back below the 27,000-mark and gradually moved down to a low of 26,897.54 before concluding at 27,011.31, a fall of 214.62 points or 0.79 per cent.
Market commentary by Gaurav Jain, Director, Hem Securities
The market ended the last day of April series on a weak note with 50-share Nifty settling below 8200 level. Indices tried to come up but cannot manage to trade in green throughout the day and thereby increasing volatility at the bourses. Weak US growth data last night and cautious comments from the US Federal Reserve weighed on the sentiment on D-Street. The 30-share Sensex slipped 214.62 points or 0.79% at 27011 with 23 components falling. Among sectors, Metals, Fast Moving Consumer Goods, Auto, Information Technology and Telecom were on the loser’s side while Real Estate, Oil & Gas and Bankex bucked the trend with marginal gains. HDFC Twins, Tata Steel, Mahindra & Mahindra, Coal India, Tata Motors, Dr. Reddy’s Laboratories, Tata Power, Hero Motorcorp, ITC and GAIL contributed to the major fall to the index whereas Axis Bank, BHEL, SSLT, Reliance Industries and Cipla were among the just few gainers in the index. Bosch jumped 6 percent intraday as it will be soon added on the National Stock Exchange’s benchmark index Nifty. Infrastructure financing firm IDFC will move out of the Nifty and will be replaced by auto component major Bosch. The BSE Mid-Cap index gained 7.53 points or 0.07% to settle at 10,416.29. The BSE Small-Cap index fell points or 0.15% to settle at 10,944.03. Both the indices outperformed the Sensex. Among midcaps; Godrej Industries, Motherson Sumi, UPL, Allhabad Bank and Glenmark Pharma hogged the limelight with 4%-6% gains while Exide Industries, M&M Finance, JP Power, Shree Cement and United Breweries shed 3%-6%. The market breadth was weak with advance with 1293 advance against 1398 declines on the BSE while 132 stocks remained unchanged.
The gauge had lost 170.45 points in yesterday’s volatile session.
In Asia, markets mostly fell in line with an overnight sell-off in the US markets, after growth data fell well short of forecasts.
European markets were, however, trading a shade higher in early trade.
“The F&O expiry and other other negative factors including muted Q4 earnings have dampened market sentiments,” said a Delhi-based stockbroker.
Market heavyweights like HDFC plunged 2.70 per cent, Tata Steel fell 2.37 per cent, M&M tumbled 2.25 per cent, Tata Motors declined 2.21 per cent, Tata Power lost 1.94 per cent and Bharti Airtel 1.51 per cent.
Other prominent losers were Coal India, Dr Reddy’s, ITC, Hero MotoCorp, Hindalco, Hind Unilever, Infosys and SBI.
Shares of Jindal Steel & Power slumped 4.16 per scent to close at Rs 139.55 after CBI filed a chargesheet against company’s owner Naveen Jindal in connection with a coal block allocation scam case.
Foreign Portfolio Investors sold shares worth Rs 718.31 crore yesterday as per provisional data.
Meanwhile, stocks of transport and logistics firm VRL made a stellar debut today by surging 43.07 per cent to Rs 293.30 after climbing to Rs 309.10.
Stock markets will remain close tomorrow on account of Maharashtra Day.