Markets close flat, profit booking pares gains

bseMumbai, (IANS) : Indian equity markets closed flat on Monday due to profit booking and caution ahead of major global financial events.

However, fresh foreign fund inflows, positive global indices, higher crude oil prices and value buying kept the key indices anchored in the positive territory.

Consequently, both the key Indian indices closed the day’s trade on a flat-to-positive note.

The wider 51-scrip Nifty of the National Stock Exchange (NSE) edged up by 28.55 points or 0.33 per cent to 8,808.40 points.

The barometer 30-scrip sensitive index (Sensex) of the BSE, which opened at 28,626.60 points, closed at 28,634.50 points — up 35.47 points or 0.12 per cent from its previous close at 28,599.03 points.

The Sensex touched a high of 28,714.77 points and a low of 28,552.55 points during the intra-day trade.

The BSE market breadth was tilted in favour of the bulls — with 1,485 advances and 1,264 declines.

Last week, on Friday, both the key Indian indices closed with appreciable gains, prompted by reduced chances of a US rate hike, foreign fund inflows and value buying.

The barometer index had surged by 186.14 points or 0.66 per cent, while the NSE Nifty was up 37.30 points or 0.43 per cent.

“Indian equity markets made slim gains on the back of positive global markets and value buying, which was triggered by last week’s dips,” Anand James, Chief Market Strategist at Geojit BNP Paribas Financial Services, told IANS.

“However, caution ahead of the Bank of Japan (BoJ) and US Fed’s monetary policy announcements capped gains.”

Initially on Monday, the benchmark indices opened on a firm note in sync with their Asian peers.

However, investors were seen cautious ahead of the US Fed’s FOMC (Federal Open Market Committee) meeting, which is scheduled for September 20-21.

A hike in US interest rates can potentially lead FPIs (Foreign Portfolio Investors) away from emerging markets such as India.

It is also expected to dent business margins as access to capital from the US will become expensive.

Besides, caution also prevailed ahead of BoJ’s monetary policy review.

Nevertheless, higher crude oil prices, inflow of foreign funds, value buying at lower levels and an appreciation in the rupee kept the indices buoyed.

The rupee strengthened by two paise to 66.96 against a US dollar from its previous close of 66.98 on Friday.

“Broader markets outperformed the headline indices,” said Nitasha Shankar, Senior Vice President for Research with YES Securities.

“The midcap index ended higher by 0.70 per cent, while the small-cap index ended higher by 0.86 per cent.”

According to Dhruv Desai, Director and Chief Operating Officer of Tradebulls, the CNX Nifty closed firm on the back of positive global cues and buying support.

“IT stocks traded with firm sentiments throughout the session. However, banking and pharma stocks faced profit booking at higher levels,” Desai said.

“Auto and oil-gas stocks traded with firm sentiments. Aviation stocks traded with mixed sentiments on profit booking at higher levels and higher crude oil prices.”

Sector-wise, all the 19 sub-indices witnessed healthy buying, except the FMCG index, which fell by 38.13 points.

The S&P BSE metal index gained by 126.70 points, followed by the oil and gas index, which edged up 77.59 points, and the banking index rose by 75.36 points.

In terms of investments, provisional data with the exchanges showed that the foreign institutional investors (FIIs) purchased stocks worth Rs 205.38 crore, whereas the domestic institutional investors (DIIs) divested scrip worth Rs 252.28 crore.

Major Sensex gainers during Monday’s trade were: Tata Consultancy Services (TCS), up 1.96 per cent at Rs 2,407.35; ICICI Bank, up 1.61 per cent at Rs 271.85; Adani Ports, up 1.60 per cent at Rs 276.10; Coal India, up 1.17 per cent at Rs 328.80, and ONGC, up 1.07 per cent at Rs 254.

Major Sensex losers were: Maruti Suzuki, down 1.48 per cent at Rs 5,483.60; Bajaj Auto, down 1.15 per cent at Rs 2,945.75; Axis Bank, down 1.11 per cent at Rs 594.45; Hero MotoCorp, down 0.90 per cent at Rs 3,553; and ITC, down 0.86 per cent at Rs 258.15.


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