Indian equity market witnessed intense volatility throughout the trading session on Friday and ended the day in red following sell-off from foreign investors and weak cues from the global markets. Markets spooked after Larsen and Toubro (L&T) cut its order growth outlook, despite registering positive results for the second quarter. The main benchmark index Sensex lost over 1.7% during the week after making a gain of 5% a week before.
According to the provisional figures furnished by the Bombay Stock Exchange (BSE), foreign institutional investors (FII) sold stocks worth over R234 crore on Friday while domestic institutional investors (DII) bought stocks of R73 crore. In the current current calendar year FIIs have sold over $ 0.15 billion worth of equities in the Indian equity markets.
The 30-share Sensex of BSE was down by 151.25 points or 0.89% on Friday to end the day at 16,785.64 while the broader S&P CNX Nifty of National Stock Exchange closed the day at 5,049.95 witnessing a fall of 41.95 points or 0.82%.
Market participants said last few trading sessions markets were volatile following European concerns and high inflation. Surge in the food inflation also suggests of further policy tightening by the RBI next week.
Deven Choksey, MD at KR Choksey Securities said, ?On Friday markets were trading on positive note, but after the results of L&T, some jitters were seen in the markets. We believe t markets will be keenly looking at Eurozone meeting next week..? He also added that, a (probable) rate hike from the next week?s Reserve Bank of India (RBIs) policy review would not have much impact as small rate hike is already factored in by the markets.
Barring consumer durables (CD) all the sectors in the BSE sectoral indices ended the day in red, with metal, capital goods (CG) and realty being the worst performers for the day. On Friday, Asian markets ended the day on a mixed note. China?s Shanghai Se Composite was down at 0.60%, while Hong Kong?s Hang Seng Composite closed marginally up by 0.5% while South Korea?s Kospi Index was up by 1.8%.
The NSE?s derivatives segment reported a turnover of over R1.49 lakh crore down by 6% as compared to the previous session, while the average daily turnover in the last six months stood at approximately R1.26 lakh crore. The turnover in the cash segment on the NSE was approximately at over R 8,900 a fall of over 3% as against Thursday?s total turnover. The average daily turnover in the last six months was at over R10,800 crore.
According to market participants, in the days to come, market will be looking at cues from the Europe markets, central bank?s policy as well as trends in derivatives rollovers for Nifty contracts.