Profit booking, along with negative global cues and an outflow of foreign funds, suppressed the Indian equity markets on Friday.Both the key indices closed in the red due to heavy selling pressure in late-afternoon trade. The equity markets were range bound in the flat zone through out the intra-day trade. The wider 51-scrip Nifty of the National Stock Exchange (NSE) slipped by 35.90 points or 0.40 per cent to 8,831.55 points.The barometer 30-scrip sensitive index (Sensex) of the BSE, which opened at 28,810.32 points, closed at 28,668.22 points -- down 104.91 points or 0.36 per cent from the previous close at 28,773.13 points.The Sensex touched a high of 28,825.09 points and a low of 28,627.38 points during the intra-day trade.The BSE market breadth was tilted in favour of the bears -- with 1,496 declines and 1,166 advances.On Thursday, both the key indices had made gains of around a per cent each on the back of positive global cues, fresh inflow of foreign funds, healthy macro economic data and a strong rupee.The barometer index had gained 265.71 points or 0.93 per cent to 28,773.13 points, while the NSE Nifty by 90.30 points or 1.03 per cent to 8,867.45 points.Initially on Friday, the benchmark indices opened on a negative note in sync with their Asian peers.
The global markets, especially the Asian and European stocks, remained mostly negative on the back of disappointing US macro-economic data.Besides, investors' sentiments were dented on the back of upcoming F&O (futures and options) expiry.Moreover, profit booking at higher levels, outflow of foreign funds and a flat rupee added to the downward trajectory. The rupee inched up only by a paisa to 66.66 against a US dollar from its previous close of 66.67 to a greenback.However, value buying at lower levels helped the key indices to pare some of their losses."With key event risks of FOMC-BoJ behind, derivatives' unwinding was seen in markets, especially with F&O expiry falling next week. This left stocks and indices to settle on a lower note," said Anand James, Chief Market Strategist at Geojit BNP Paribas Financial Services."With the announcement of MPC (Monetary Policy Committee) members, the focus is also shifting towards new RBI (Reserve Bank of India) Governor's rate decision."According to Dhruv Desai, Director and Chief Operating Officer of Tradebulls, the CNX Nifty traded sideways to bearish sentiments throughout the session due to profit booking at higher levels."IT stocks traded down tracking lower USD/INR futures prices. Banking and auto stocks traded down, while pharma and oil-gas stocks traded with firm sentiment," said Desai.
"Aviation stocks managed to hold the early gains throughout the session. FMCG, power and cement stocks traded with mixed sentiments due to profit booking at higher levels."In terms of investments, provisional data with the exchanges showed that the foreign institutional investors (FIIs) sold stocks worth Rs 299.98 crore, whereas the domestic institutional investors (DIIs) bought scrip worth Rs 496.14 crore.Sector-wise, the S&P BSE banking index plunged by 282.57 points, followed by the healthcare index, which edged down 60.04 points, and the automobile index receded by 53.35 points.On the other hand, the S&P oil and gas index rose by 83.83 points, the energy index edged up by 27.22 points, and the metal index gained 18.15 points.Major Sensex gainers during Friday's trade were: Reliance Industries, up 1.41 per cent at Rs 1,102.95; Dr Reddy's Lab, up 1.05 per cent at Rs 3,181.10; Tata Consultancy Services (TCS), up 0.83 per cent at Rs 2,397.30; HDFC, up 0.54 per cent at Rs 1,421.15; and HDFC Bank, up 0.42 per cent at Rs 1,313.15.Major Sensex losers were: Axis Bank, down 5.84 per cent at Rs 557.40; Lupin, down 2.59 per cent at Rs 1,488.75; Infosys, down 1.46 per cent at Rs 1,043; Power Grid, down 1.46 per cent at Rs 175.80; and ICICI Bank, down 1.36 per cent at Rs 271.80.