Global geo-political tensions, coupled with outflow of foreign funds and a weak rupee pulled the domestic equity markets lower on Monday.Investors were also cautious ahead of the upcoming fourth quarter earning results and major macro-economic data points, which are slated to be released during the week.The key indices closed the day's trade in the red as heavy selling pressure was witnessed in IT, consumer durables, and Teck (technology, media and entertainment) stocks. The wider 51-scrip Nifty of the National Stock Exchange (NSE), which opened above its psychologically significant mark of 9,200 points, fell by 16.85 points or 0.18 per cent to 9,181.45 points.The barometer 30-scrip sensitive index (Sensex) of the BSE, which opened at 29,752.62 points, closed at 29,575.74 points -- down 130.87 points or 0.44 per cent from the previous close at 29,706.61 points.The Sensex touched a high of 29,831.32 points and a low of 29,553.04 points during the intra-day trade. In contrast, the BSE market breadth was bullish -- with 1,757 advances and 1,144 declines.However, the broader markets outperformed the benchmark indices. The S&P BSE mid-cap index rose by 0.63 per cent, while the small-cap index closed higher by 0.64 per cent.
"Carrying on from last Friday, markets continued to drift lower on Monday for the third consecutive session to finally close with modest losses. IT stocks dropped in the weak market," Deepak Jasani, Head - Retail Research, HDFC Securities, told IANS."Traders and investors remained cautious amid rising geopolitical tensions, weak US jobs data and ahead of earnings season, that will be kicked off by Infosys on Thursday. Major Asian markets have ended on a mixed note, while European indices like FTSE 100, CAC 40 and DAX traded lower."Anand James, Chief Market Strategist, Geojit Financial Services, said: "Weak global cues could have kept earnings expectations also under check. Rupee fell sharply after opening on a firm note, but was not enough to turn IT stocks' fortunes.""To this end, Q4 holds key, as rupee, oil, dollar, El Nino threaten to stall progress."On the currency front, the Indian rupee weakened by 27 paise to 64.56 against a US dollar from its previous close of 64.29 to a greenback.In terms of investments, provisional data with the exchanges showed that the foreign institutional investors (FIIs) sold scrip worth Rs 716.19 crore, while the domestic institutional investors (DIIs) purchased scrip worth Rs 201.69 crore.
According to Dhruv Desai, Director and Chief Operating Officer of Tradebulls, after a positive opening, the Nifty witnessed range bound movement throughout the session and ended on a flat note."Among the sectors, IT witnessed selling pressure throughout the session, while banks, media and metals remained the top performing sectors on the positive side," Desai explained.Sector-wise, the S&P BSE IT index slipped by 164.35 points, followed by the consumer durables index, which went down by 65.74 points, and the Teck index, which fell by 62.43 points. On the other hand, the banking index surged by 128.96 points, the oil and gas index rose by 122.43 points, and the metal index edged higher by 110.36 points.Major Sensex gainers on Monday were: Tata Motors, up 1.51 per cent at Rs 475.05; Axis Bank, up 1.38 per cent at Rs 510.75; Coal India, up 1.16 per cent at Rs 287.25; Adani Ports, up 1.06 per cent at Rs 351.25; and Tata Steel, up 0.52 per cent at Rs 495.45.Major Sensex losers were: Infosys, down 2.88 per cent at Rs 952.95; Wipro, down 2.10 per cent at Rs 501; Asian Paints, down 1.91 per cent at Rs 1,060.05; Reliance Industries, down 1.74 per cent at Rs 1,381.05; and HDFC, down 1.28 per cent at Rs 1,465.