Indian equities slip as global cues spook investors

Mumbai, June 8 (IANS) The Indian equity markets on Thursday closed on a flat-to-negative note as investors remained cautious on the day of British general election and the European Central Bank's (ECB) monetary policy review.

However, market observers pointed out that further downfall was arrested as sentiments remained buoyant on the approaching Goods and Services Tax (GST) execution and the Reserve Bank of India's decision on Wednesday to cut the statutory liquidity ratio by 50 basis points which will boost liquidity levels of the commercial banks.

The Nifty of the National Stock Exchange (NSE) inched down by 16.65 points or 0.17 per cent to close at 9,647.25 points.

The 30-scrip Sensitive Index (Sensex) of the BSE, which opened at 31,316.91 points, closed at 31,213.36 points -- down 57.92 points or 0.19 per cent from its previous close at 31,271.28 points.

It touched a high of 31,354.51 points and a low of 31,193.77 points during intra-day trade.

The BSE market breadth was slightly bearish -- with 1,383 declines and 1,304 advances.

In contrast, in the broader markets, the S&P BSE mid-cap index rose by 0.23 per cent and the small-cap index by 0.30 per cent.

"Markets ended with modest losses on Thursday after a shaky opening as caution prevailed in global markets ahead of key global events of outcome of elections in the UK and the ECB's monetary policy review," Deepak Jasani, Head - Retail Research, HDFC Securities, told IANS.

"Major Asian markets have ended on a positive note barring the Nikkei and Jakarta indices. European indices like CAC 40 and DAX traded higher."

Anand James, Chief Market Strategist, Geojit Financial Services, said: "With RBI decision past, markets looked to have retracted into a shell, awaiting further sparks. While UK election and ECB meet added to the restraint, pharma space saw buying after the recent falls attracted bargain buyers."

"Investors will now look forward to emerging confidence among industry participants as GST roll-out approaches," James added.

On the currency front, the rupee strengthened by 11-12 paise to 64.21-22 per US dollar from its previous close of 64.33.

In investments, provisional data with the exchanges showed that foreign institutional investors (FIIs) purchased stocks worth Rs 90.78 crore, while domestic institutional investors (DIIs) bought scrips worth Rs 738.78 crore.

"The IT index was the worst performing sector down more than one per cent. Selling pressure on Infosys continued for the second straight day, with less intensity though, as the stock fell over one per cent against the three percent fall seen on Wednesday," said Dhruv Desai, Director and Chief Operating Officer of Tradebulls.

"Financial stocks pushed the indices higher, with Kotak Mahindra Bank and HDFC Bank driving the gains after the RBI made it easier for India's stressed banks to lend, cutting their statutory liquidity ratio by 50 basis points."

Sector-wise, the S&P oil and gas index fell by 193.25 points, the IT index by 137.23 points, and the consumer durables index by 94.39 points.

On the other hand, the S&P BSE healthcare index surged by 228.55 points, the metal index rose by 80.55 points, and the finance index was up by 15 points.

Major Sensex gainers on Thursday were: Dr. Reddy's Lab, up 3.79 per cent at Rs 2,637.25; Sun Pharma, up 3.38 per cent at Rs 528.45; HDFC, up 2.28 per cent at Rs 1,634.05; Cipla, up 1.77 per cent at Rs 548.95; and Tata Steel, up 1.61 per cent at Rs 498.95.

Major Sensex losers were: Tata Consultancy Services (TCS), down 3.59 per cent at Rs 2,521.50; Gail, down 3.44 per cent at Rs 388.70; Asian Paints, down 1.61 per cent at Rs 1,143.60; Hero MotoCorp, down 1.55 per cent at Rs 3,784.55; and ICICI Bank, down 1.42 per cent at Rs 320.15.