Sensex, Nifty end on a flat note, investors on the fence
The 30-share Sensex rallied to the day’s high of 31,935.63, but slipped before ending up 32.67 points -- or 0.10 per cent -- at 31,846.89.business Updated: Oct 09, 2017 18:22 IST
Key stock indices Sensex and Nifty took a breather on Monday as they closed with minuscule gains, with domestic institutional investors lending crucial support.
The GST Council’s last week decision to make things easy for exporters and small and medium businesses came as a positive move.
But market participants chose to play with care as the earnings season for the September quarter kicks off this week, which remains a big unknown, traders said.
Leading IT exporter Tata Consultancy Services (TCS) is set to come out with its earnings numbers on Thursday.
The 30-share Sensex rallied to the day’s high of 31,935.63, but slipped before ending up 32.67 points -- or 0.10 per cent -- at 31,846.89.
Part of the selling was an outcome of a rush to take profit. The gauge had gained 222 points on Friday.
The NSE 50-share after reclaiming the crucial 10,000- mark slipped back to close up 9.05 points, or 0.09 per cent, at 9,988.75. Intra-day, hit a low of 9,959.45.
“Market gained initial momentum from the FMCG sector against the backdrop of GST rate cut for 27 items, but investors were reluctant to take more risk ahead of the earning season. Upcoming IIP numbers and inflation data will also have a crucial impact on the market, especially with the weak growth forecasts and persisting GST hurdles,” said Anand James, Chief Market Strategist, Geojit Financial Services Ltd.
Domestic institutional investors (DIIs) stuck to their buying behaviour, picking up shares net Rs 1,239.74 crore. Share outflow from foreign portfolio investors (FPIs) continued at net Rs 1,040.40 crore last Friday, showed provisional data.
Coal India hit a home run, up 1.81 per cent -- the biggest jumper on the Sensex list. HUL, Kotak Bank, Dr Reddy’s, Adani Ports and Tata Steel advanced by up to 1.37 per cent.
Stocks of automakers stepped on gas, driven by buying support on hopes of a pick-up in demand during the ongoing festive and wedding season.
Jewellery stocks were big movers and rallied up to 5.27 per cent after the government revoked an order that mandated PAN and Aadhaar cards for purchases above Rs 50,000.
Gitanjali Jems, PC Jeweller and Titan Company and TBZ gained by up to 5.27 per cent.
Of the sectoral indices, BSE realty was the centre of buying activity as the index jumped the most by gaining 2.20 per cent. Consumer durables, FMCG and IT were in the green too.
The broader market showed a mixed movement, with BSE small-cap rising 0.62 per cent and mid-cap dropping 0.04 per cent.
Key shares in Asia and Europe showed up a mixed picture.