Equity benchmarks ended on a negative note after a volatile session on Thursday as investor sentiment remained on the back foot amid lacklustre macroeconomic data and mixed overseas cues.
Auto stocks skidded following weak April sales numbers, while IT counters tumbled as the rupee strengthened above the 70 per dollar mark.
The BSE Sensex settled 50.12 points, or 0.13 per cent, lower at 38,981.43. During the day, the index swung over 300 points, hitting an intra-day low of 38,882.99 and a high of 39,189.95.
In similar movement, the broader NSE Nifty slipped 23.40 points, or 0.20 per cent, to close at 11,724.75. It also saw an intra-day movement of 89.75 points.
Globally, stock markets struggled after the US Federal Reserve decided to keep its benchmark interest rate unchanged amid mixed signals about the direction of the American economy.
In the Sensex pack, Tata Motors was the biggest loser, shedding 3.29 per cent, followed by ICICI Bank, IndusInd Bank, Infosys, HCL Tech, Axis Bank, TCS, HUL, Asian Paints, Sun Pharma, SBI, Tata Steel and NTPC, which dropped up to 3.23 per cent.
On the other hand, Yes Bank was the top gainer, rebounding 3.45 per cent. PowerGrid, HDFC, HDFC Bank, Hero MotoCorp, Bajaj Auto, Bharti Airtel, Bajaj Finance, Kotak Bank, RIL, L&T, Vedanta, ITC, ONGC and Maruti too ended in the green, rising up to 1.88 per cent.
“As we enter the final stages of the 2019 general elections, one can expect the volatility in the market to remain high. Q4 FY19 earnings so far has been lacklustre, slowdown in sectors such as consumption and auto has hurt investor sentiments.
“Rising oil prices continue to be a threat to the domestic markets. However, due to the ongoing general elections the government has kept domestic oil prices stable and has not undertaken any steep hikes,” said Hemang Jani, Head - Advisory, Sharekhan by BNP Paribas.
Sectorally, BSE IT, teck, consumer durables, bankex and auto indices ended in the red, falling up to 1.84 per cent. The broader BSE Midcap and Smallcap gauges closed in line with the benchmarks, shedding up to 0.61 per cent.
Elsewhere in Asia, Korea’s Kospi and Hong Kong’s Hang Seng ended in the green, while other major bourses in China and Japan were shut. European equites started off on a mixed note.
Rupee darts up 19 paise
The rupee, meanwhile, appreciated by 19 paise to 69.37 against the US dollar on Thursday, registering its third consecutive session of gain amid easing crude oil prices and weakening of the greenback against other major currencies overseas.
Forex dealers said selling of the American currency by exporters and sustained foreign fund inflows also propped up the rupee.
At the interbank foreign exchange market, the domestic unit opened at 69.60 per dollar and advanced to a high of 69.62 during the day. It finally settled at 69.37, registering a rise of 19 paise over its previous close. The rupee had settled at 69.56 against the US dollar Tuesday. Currency market was shut on Wednesday on account of Maharashtra Day.
Brent crude futures, the global oil benchmark, slipped 0.93 per cent to USD 71.51 per barrel. Crude prices have recovered significantly from their six-month high of USD 75.60 per barrel. “Oil prices fell today, pulled down by record US crude production that led to a surge in iXWnventories. Brent is set for a weekly loss, which would break its longest string of weekly gains for a year,” said V K Sharma, Head PCG and Capital Markets Strategy, HDFC Securities.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, slipped 0.05 per cent to 97.63. Foreign institutional investors (FIIs) remained net buyers in the capital markets, putting in Rs 114 crore Tuesday, according to provisional exchange data.