Global cues, selling pressure pull equity indices lower

5 Dariya News

Mumbai 21-Aug-2017

Negative global cues and heavy selling pressure in index heavyweights such as Infosys, ONGC and Tata Motors among others pulled the key Indian equity indices -- the NSE Nifty 50 and the BSE Sensex -- lower on Monday.According to market observers, subdued global benchmark indices coupled with foreign fund outflows eroded investors' risk-taking appetite.Besides, heavy selling pressure witnessed in oil and gas, automobile, IT, banking and capital goods stocks too weighed heavy on key indices.The 30-scrip Sensitive Index (Sensex) closed lower by 265 points or 0.84 per cent.Similarly, the wider 51-scrip Nifty of the National Stock Exchange (NSE) closed lower by 83.05 points or 0.84 per cent at 9,754.35 points.The BSE Sensex, which opened at 31,609.93 points, closed at 31,258.85 points, lower by 265.83 points or 0.84 per cent from Friday's close at 31,524.68 points.The Sensex touched a high of 31,641.81 points and a low of 31,220.53 points during the intra-day trade.However, the BSE Sensex and NSE Nifty had opened higher on Monday against their respective previous sessions' close.Broad market indices -- the BSE mid-cap and BSE small-cap -- underperformed the main indices."Weakness in global stocks impacted sentiments on the domestic bourses. Major Asian markets have ended on a mixed note. European indices like FTSE 100, DAX and CAC 40 are trading lower," Deepak Jasani, Head of Retail Research, HDFC Securities, told IANS."Continued sharp fall in software pivotal Infosys also weighed on key indices.

"On the currency front, the Indian rupee closed on a flat note at 64.13-14 to a US dollar from its Friday's close.In investments, provisional data with the exchanges showed that foreign institutional investors (FIIs) sold scrip worth Rs 1,983.39 crore, whereas domestic institutional investors (DIIs) purchased stocks worth Rs 474.72 crore."Markets were volatile and swung between gains and losses, as global cues remained mixed after investors felt unconvinced about US President Donald Trump's ability to fulfill his economic agenda," Dhruv Desai, Director and Chief Operating Officer of Tradebulls, told IANS."Infosys' buyback announcement failed to enthuse investors as the stock fell over 3 per cent to Rs 893."The company had announced on last Saturday that it would buy back shares for up to Rs 13,000 crore from investors at Rs 1,150 per share. Major Sensex gainers on Monday were: Axis Bank, up 0.70 per cent at Rs 494.15; Tata Consultancy Services, up 0.34 per cent at Rs 2,521.40; Mahindra and Mahindra, up 0.27 per cent at Rs 1,374.85; HDFC, up 0.22 per cent at Rs 1,738.90; and ITC, up 0.12 per cent at Rs 282.15.Major Sensex losers were: Infosys, down 5.37 per cent at Rs 873.50; Adani Ports and Special Economic Zone, down 2.74 per cent at Rs 376.05; Dr Reddy's Lab, down 2.51 per cent at Rs 1,933.15; Sun Pharma, down 2.01 per cent at Rs 460.55; and ONGC, down 1.99 per cent at Rs 157.55.