Benchmark indices slipped on Wednesday, as investors booked profit on the last trading day for financial year 2017-18 (FY18) that co-incided with the expiry of F&O contracts for the March 2018 series. That apart, weak global cues also weighed on the overall sentiment.
The S&P BSE Sensex ended at 32,968, down 206 points while the broader Nifty50 index settled at 10,113, down 71 points. The indices posted a monthly loss of about 3.5 per cent, their steepest drop for the month of March since 2015. For FY18, the Nifty50 index gained around 10%.
"We expect the Indian equities to remain range bound in the coming sessions. Domestic macro data and global developments will dictate the further course of the market in the near term. In the coming week with the release of volume data for March, Auto stocks would remain in focus. Valuations at current levels are not cheap and India continues to trade at a premium to the other emerging markets. Hence, for this premium to sustain, continued reform implementation and revival in the corporate earnings is essential," said Jayant Manglik, President, Religare Broking.
Among sectoral indices, the Nifty Metal index closed 2.1% lower, led by a drop in shares of Tata Steel, SAIL and Jindal Steel & Power. The Nifty PSU bank index also fell over 2%.
"We expect the similar kind of returns from equity markets during the next fiscal too but with increased volatility due to large political events. While risk of higher yield may continue to persist in year ahead, we believe a healthy double digit growth in corporate earnings will aid markets to sustain high valuations," said Rakesh Tarway, Reserch Head at Reliance Securities in an emailed note.
Adding: "We do not find any solid reason for domestic savings to divert to other investment avenues and therefore benign domestic flow to equities is likely to support equity markets. Factors to watch during FY19 are hardening of USA Fed rates and movement of crude oil prices. Hardening of rates by USA Fed may impact flow of global liquidity to emerging markets."
TRUNCATED WEEK
Markets will remain closed on Thurday and Friday on account of Mahavir Jayanti and Good Friday, respectively. The bourses will now open on Monday, April 02. With effect from April 1, long-term capital gains— profits made on the sale of equity shares held for over 12 months—will be taxed at the rate of 10%.
GLOBAL MARKETS Stocks toppled again on Wednesday, as jitters about a US-China trade war and regulatory crackdown on firms such as Facebook left investors facing their first quarterly fall in equity markets in two years.
Europe’s main bourses opened more than 1% weaker as the fifth sell-off in six days gathered momentum and sent risk-averse traders piling back to the safety of bond markets.
German bunds, seen as Europe’s most secure asset due to Berlin’s triple-A-rated finances, rallied hard to send 10-year yields back under 0.5% for the first time since early January.
(with Agency inputs)
 "Nifty ends March F&O expiry at 10,113, up a little over 10% in FY18")
