Stock markets end lower in choppy trade; Sensex declines 114 points
Benchmark indices ended lower in a choppy trade on Thursday, with the Sensex declining 114 points, as investors turned cautious amid unabated foreign fund outflows and rising geopolitical uncertainties.
After facing heavy fluctuations during the day, the 30-share BSE Sensex ended 114 points or 0.15 per cent lower at 77,844.52. During the session, the benchmark hit a high of 78,384.70 and a low of 77,713.21, gyrating 671.49 points.
The 50-share NSE Nifty dipped 4.30 points, or 0.02 per cent, to end at 24,326.65.
“Indian markets remained volatile throughout the session, with the Nifty closing flat at 24,326, amid continued Foreign Institutional Investor outflows, crude oil prices sustaining around $100 per barrel, rupee weakness and uncertainty surrounding Iran’s response to the proposed negotiation terms,” Siddhartha Khemka - Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd, said.
From the Sensex firms, Hindustan Unilever, Tata Consultancy Services, Tech Mahindra, Titan, Sun Pharma and ITC were among the major laggards.
On the other hand, Mahindra & Mahindra, NTPC, Kotak Mahindra Bank and Tata Steel were among the winners.
The BSE MidCap Select index jumped 1.40 per cent, and the SmallCap Select index climbed 1.09 per cent.
Sectorally, Focused IT fell 0.76 per cent, PSU Bank (0.54 per cent), Consumer Durables (0.52 per cent), FMCG (0.45 per cent), Energy (0.11 per cent),
Capital Goods jumped 2.05 per cent, Power (1.23 per cent), Auto (1.81 per cent), Industrials (1.69 per cent), Power (1.23 per cent) and Realty (0.88 per cent).
“The positive undertone was primarily driven by a sharp cooling in crude oil prices amid optimism surrounding a potential US-Iran peace agreement. Stability in the rupee, improving global sentiment, and continued buying interest in select earnings-driven counters further supported the move.
“However, persistent geopolitical uncertainty and cautious institutional positioning ahead of key developments kept the upside in check,” Ajit Mishra, SVP, Research, Religare Broking Ltd, said. Brent crude, the global oil benchmark, traded 2.23 per cent lower at $99 per barrel. The rupee pared initial losses to settle on a positive note, 23 paise higher at 94.26 (provisional) against the US dollar on Thursday.
Foreign Institutional Investors (FIIs) offloaded equities worth `5,834.90 crore on Wednesday, according to exchange data.
In Asian markets, South Korea’s benchmark Kospi, Nikkei 225 index, Shanghai’s SSE Composite index and Hong Kong’s Hang Seng index were trading higher.
Markets in Europe were trading lower.
US markets ended sharply higher on Wednesday.
“The Indian stock market closed on a slightly cautious note today. Continued FII outflows and subdued global cues weighed on the market. Ongoing geopolitical uncertainties also kept investor confidence in check, impacting overall risk appetite,” Gaurav Garg, Research Analyst at Lemonn Markets Desk, said.
On Wednesday, the Sensex jumped 940.73 points, or 1.22 per cent, to settle at 77,958.52. The Nifty rallied 298.15 points, or 1.24 per cent, to end at 24,330.95.
