Bearish global cues, along with disappointing domestic macro-economic data and a weak rupee, dragged the key Indian equity markets lower on Monday. Consequently, the key indices closed the day's trade in the red, which also marked the fourth consecutive session of decline for the equity markets.The wider 51-scrip Nifty of the National Stock Exchange (NSE) edged down by 59.45 points, or 0.73 per cent, at 8,110.60 points.The barometer 30-scrip sensitive index (Sensex) of the BSE, which opened at 26,468.27 points, closed at 26,396.77 points -- down 238.98 points, or 0.90 per cent, from the previous close at 26,635.75 points.The Sensex touched a high of 26,468.27 points and a low of 26,262.27 points during the intra-day trade.The BSE market breadth was skewed in favour of the bears -- with 1,545 declines and 953 advances.The key indices on Friday had closed in the red led by negative global cues. The barometer index had lost 127.71 points or 0.48 per cent, while the NSE Nifty fell by 33.55 points or 0.41 per cent.
Initially on Monday, the key indices opened on a weak note, in sync with their Asian peers and a lower close of the US stock on last Friday.Asian stocks receded as investors were seen to be cautious ahead of the US FOMC's (Federal Open Market Committee) rate setting meet on Tuesday.A hike is expected to lead FPIs (Foreign Portfolio Investors) away from emerging markets such as India.The bank of Japan's (BoJ) monetary policy meet this week too flared volatility.Further, lower crude oil prices and a weak rupee dented key indices.The Indian rupee weakened by 38 paise during the day's trade. It closed at 67.13-14 against a US dollar from its previous close of 66.76 to a greenback.Besides, the upcoming domestic macro-economic inflation data -- Consumer Price Index (CPI) -- stroked volatility. A rise in CPI inflation may further reduce chances of a future rate cut by the Reserve Bank of India (RBI).In addition, poor data on industrial production which was released after market hours on Friday last week weighed heavy on sentiments.India’s Index of Industrial Production (IIP) showed a contraction of 0.8 per cent in April, as the manufacturing sector output dipped by a sharp 3.1 per cent.
"Upcoming major global event risks and bearish international markets dragged the Indian equity indices down," Anand James, Chief Market Strategist, Geojit BNP Paribas Financial Services, told IANS."Lower crude oil prices and depreciation in rupee value too hurt investors' sentiments." According to Dhruv Desai, Director and Chief Operating Officer of Tradebulls, Nifty opened on a lower note tracking bearish global cues, but recovered from day’s low in the second half of the session due to short covering at lower levels."IT and banking sector stocks traded down due to profit booking, while most of the sugar sector stocks witnessed firm sentiments on buying support," Desai said.Nitasha Shankar, Senior Vice President for Research with YES Securities, pointed out that broader markets ended on a mixed note. "Midcap ended in the red with a cut of 0.7 per cent, while small cap index gained marginally by 0.08 per cent," Shankar said."PSU bank, realty and metal indices ended deep in the red. Media and pharma indices witnessed short covering rally in late trade to end in the green."In terms of investments, the foreign institutional investors (FIIs) were net buyers during the day's trade, while the domestic institutional investors (DIIs) turned net sellers.
Data with stock exchanges showed that the FIIs purchased stocks worth Rs 212.24 crore and the DIIs sold scrip worth Rs 597.83 crore.Sector-wise, healthy buying was witnessed in healthcare and energy stocks, whereas scrip of banking, automobile and capital goods witnessed heavy selling pressure.The S&P BSE healthcare index rose by 15.10 points and the energy index inched up 2.28 points.On the other hand, the S&P BSE banking index plunged by 264.08 points, followed by the automobile index, which declined by 185.20 points; and the capital goods index fell by 172.74 points.Major Sensex gainers during Monday's trade were Lupin, up 1.12 per cent at Rs 1,453.15; Dr.Reddy's Lab, up 0.70 per cent at Rs 3,086.20; Sun Pharmaceuticals, up 0.60 per cent at Rs 746.05; GAIL, up 0.49 per cent at Rs 370.90; and Maruti Suzuki, up 0.43 per cent at Rs 4,135.50.Major Sensex losers during the day's trade were ICICI Bank, down 3.38 per cent at Rs 244.10; Tata Steel, down 3.33 per cent at Rs 323.80; Tata Motors, down 2.83 per cent at Rs 444.25; BHEL, down 2.67 per cent at Rs 120.35; and Bharti Airtel, down 2.52 per cent at Rs 342.40.