Markets scale new highs, but fail to sustain impetus

Mumbai, April 27 (IANS) Indian equity markets on Thursday made fresh record highs. However, selling pressure triggered by profit bookings dragged them to closing in the red.

Besides, April 2017 derivatives expiry, coupled with weak global cues and an outflow of foreign funds, subdued investors' sentiments.

The wider 51-scrip NSE Nifty touched a new record high level of 9,367.15 points during the intra-day trade. Similarly, the BSE Sensex registered a new record intra-day high of 30,184.22 points.

On Wednesday, the NSE Nifty touched a new record high level of intra-day trade at 9,367 points. The BSE Sensex also effected a new record high of 30,167 points during intra-day trade.

On closing basis, the NSE Nifty of the National Stock Exchange (NSE) inched down by 9.70 points or 0.10 per cent to close at 9,342.15 points.

The barometer 30-scrip BSE Sensex, which opened at 30,141.39 points, closed at 30,029.74 points -- down 103.61 points or 0.34 per cent from its previous close at 30,133.35 points.

The Sensex touched a high of 30,184.22 points and a low of 29,973.40 points during the intra-day trade.

The BSE market breadth was bearish -- with 1,576 declines and 1,300 advances.

In terms of the broader markets, the S&P BSE mid-cap index closed up by 0.07 per cent, whereas the small-cap index slipped by 0.02 per cent.

"Markets ended with marginal losses on Thursday on the back of derivatives expiry, witnessing wild swings in intra-day trade. Today's losses came after three consecutive sessions of gains for the Nifty," Deepak Jasani, Head - Retail Research, HDFC Securities, told IANS.

According to Jasani, the market was volatile as traders rolled over positions in the futures and options (F&O) segment from the near month April 2017 series to May 2017 series. The April 2017 derivatives contract expired on April 27.

"The Sensex and the Nifty, both, retracted after hitting their record high levels in the intraday trade. Selling in index pivotals like ITC and HDFC put pressure on the key benchmark indices," he added.

Anand James, Chief Market Strategist of Geojit Financial Services, said: "With Trump's comments on corporate tax failing to excite US markets, and upcoming central bank meetings keeping global markets under check, Indian stocks turned to domestic cues, which was dominated by expiry dynamics."

"Q4 numbers have not disappointed so far, and have underpinned markets, but market is looking for further signs for extending the ongoing rally, especially with increasing chances of El Nino this monsoon season."

On the currency front, the Indian rupee weakened by 3-4 paise to 64.15-16 per dollar from its previous close of 64.12 to a greenback.

In terms of investments, provisional data with the exchanges showed that the foreign institutional investors (FIIs) sold scrip worth Rs 181.71 crore, while the domestic institutional investors (DIIs) purchased scrip worth Rs 233.31 crore.

Sector-wise, the S&P BSE metal index dropped by 116.06 points, followed by the healthcare index, which fell by 106.91 points, and the FMCG index, which was down by 69.11 points.

In contrast, the S&P BSE capital goods index rose by 59.72 points, the oil and gas index gained 58.66 points, and the IT index was up by 50.41 points.

Major Sensex gainers on Thursday were: Gail, up 1.18 per cent at Rs 418.60; Tata Motors, up 1.14 per cent at Rs 455.95; Cipla, up 1.11 per cent at Rs 561.25; Infosys, up 1.08 per cent at Rs 923.95; and Wipro, up 1.61 per cent at Rs 276.95.

Major Sensex losers were: Lupin, down 2.48 per cent at Rs 1,337.25; Axis Bank, down 2.19 per cent at Rs 505.95; ITC, down 1.91 per cent at Rs 285.10; Tata Steel, down 1.87 per cent at Rs 455.75; and State Bank of India (SBI), down 1.55 per cent at Rs 281.95.