Benchmark indices ended flat on Friday amid concerns that the Modi-led BJP could face defeat in Saturday’s Delhi elections. The Sensex fell near the 28,700-mark, while the Nifty slipped below 8,700.
On Friday, foreign institutional investors (FIIs) sold shares worth $15 million, while domestic institutional investors bought shares worth $18.9 million, as per provisional data on the exchanges. YTD, FIIs have bought shares worth $2.6 billion.
The 30-share BSE Sensex ended lower by 133 points or 0.5% to 28,717.91 points, while the broader 50-share Nifty declined 50.65 points or 0.6% to close at 8,661.05 points. Opinion polls suggest BJP’s Kiran Bedi could lose out to Aam Aadmi Party’s Arvind Kejriwal in the Delhi chief ministerial elections on Saturday.
The market fall was led by declines in Tata Motors, which fell more than 5% after the automaker saw its net profit fall 25.5% y-o-y. BHEL (-4.8%), Sun Pharma (-3%) and Tata Steel (-2.7%) were other major Sensex losers.
However, analysts remain bullish. “We expect the Sensex to deliver annual returns of 14% over the next 10 years, based on our residual income model. Our P/B regression model suggests a 12.6% annual return in the coming decade. Equities have returned to being the best asset class over various time frames going back 20 years. Our index targets suggest that 2015 could be another strong year for equities,” Morgan Stanley said in a research report.
It was a dismal week for the markets, with Sensex retreating in 5 out of 5 sessions and ending the week lower by 1.6%, or 465.04 points. On Tuesday, the Sensex ended 0.4% lower after the Reserve Bank of India (RBI) left key policy rates unchanged.
22 of the 30 Sensex stocks ended in the red on Friday. In the broader market, breadth was weak with 2,067 BSE stocks ending lower compared with 804 advances. Most of the 12 BSE sectoral indices ended in the red. The BSE Auto (-2.8%), BSE Healthcare (-1.7%) and BSE Bankex (-1.3%) were among the major losers.
The upcoming budget is likely to be the next big trigger for the market.
The NSE cash turnover on Friday stood at R17,311.86 crore, while the turnover in the F&O segment stood at R1.84 lakh crore.