Sensex extends losses, sheds 43 points ahead of May derivatives expiry
Short-covering by speculators ahead of May derivatives expiry on Thursday, and recovery in the rupee reversed the early losses took the BSE Sensex down 43.13 points, or 0.12% to 34,906.11.business Updated: May 30, 2018 16:23 IST
Benchmark BSE Sensex slipped over 43 points in volatile trade to end at 34,906.11 on Wednesday, with no let-up in selling by investors ahead of May derivatives expiry amid weak global cues.
The cut in India’s 2018 GDP growth forecast by Moody’s also affected sentiment, brokers said.
The BSE Sensex opened on a bearish note at 34,876.13, and slipped further to hit a low of 34,735.11 largely on sustained foreign fund outflows amid a global sell-off on political uncertainty in Italy and concerns of a possible China-US trade war.
However, short-covering by speculators ahead of May derivatives expiry on Thursday, and recovery in the rupee reversed the early losses, with the gauge scaling a high 35,017.45. It finally ended at 34,906.11, down 43.13 points, or 0.12%.
The BSE Sensex swung over 280 points intra-day. The barometer had lost 216.24 points in the previous session.
The 50-share NSE Nifty too settled 18.95 points, or 0.18%, lower at 10,614.35. During the session, it moved between 10,648.70 and 10,558.45.
Moody’s Investors Service on Wednesday cut India’s 2018 growth forecast to 7.3% from the previous estimate of 7.5%, saying the economy is in cyclical recovery but higher oil prices and tighter financial conditions will weigh on the pace of acceleration.
Brokers said the market sentiment was subdued due to lacklustre performance across the Asian markets and overnight losses at the Wall Street, rattled by renewed concerns of a possible China-US trade war and political uncertainty in Italy.
Meanwhile, foreign portfolio investors (FPIs) sold shares worth a net of Rs 407.33 crore, while domestic institutional investors (DIIs) bought shares worth Rs 578.38 crore on Tuesday, provisional data showed.