Stock market finished lower in a fluctuating session on Thursday amid expiry of December derivatives contracts and on fears that the government going in for additional borrowing could upset the fiscal deficit applecart.
The government has decided to make an additional borrowing of Rs 50,000 crore this fiscal through dated securities, a move that may risk the target of fiscal deficit breaching 3.2 per cent of GDP.
But the finance ministry maintained that there will be no change in net borrowing as envisaged in the Budget for 2017- 18, which soothed the frayed nerves a bit.
The 30-share Sensex, after touching the day's high of 34,023.65, succumbed to profit-booking and settled lower by 63.78 points, or 0.19 per cent, at 33,848.03. The gauge had lost 99 points in the previous session.
The 50-share NSE Nifty also ended down 12.85 points, or 0.12 per cent, at 10,477.90. Intra-day, it shuttled between 10,534.55 and 10,460.45.
“Market remained range-bound on the expiry day due to lingering concerns on fiscal slippage on account of the government's additional borrowing plan and shortfall in indirect tax collection. Investors used every rally as an opportunity to sell. Rich valuation and lack of fresh triggers may lead the market to a consolidation phase,” said Vinod Nair, Head of Research, Geojit Financial Services.
The end of December series contracts in the derivatives segment and a mixed trend in global markets after an oil rally made investors wait and watch.
Till Thursday's expiry in December, the Sensex was up by 698.68 points, or 2.10 per cent, and the Nifty 251.35 points, or 2.45 per cent.