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On Wednesday, the markets ended on a weak note, as foreign investors hit the ‘sell’ button ahead of year-end holidays. Foreign institutional investors were net sellers by Rs 2,808.3 crore.
While the BSE Sensex lost 297.85 points, or one per cent, to close at 27,208.61, the National Stock Exchange Nifty closed at 8,174.10. Eleven of the 12 sectoral indices ended with losses. Indices tracking the information technology and the oil & gas sector fared the worst, falling 1.38 per cent and 1.4 per cent, respectively. The real estate index rose 1.1 per cent.
Sesa Sterlite was up 0.6 per cent due to expectations of favourable moves by the government towards the mining sector. Tata Steel and ICICI Bank traded with marginal gains of 0.06 and 0.03 per cent, respectively.
On Wednesday, a domestic asset manager was said to have faced a dividend obligation. Reportedly, this contributed to the selling pressure during the session. Overall, domestic institutions were net buyers by Rs 509 crore. Investors traded in the stocks of 2,942 companies, most ending with losses.
Jayant Manglik, president (retail distribution), Religare Securities Ltd, said the Nifty would consolidate in a broad range of 8,050-8,450. In an emailed statement, he added investors could use declines to add to quality stocks.
Kisan R Choksey, chairman at Kisan Ratilal Choksey Shares & Securities, said recent political triggers aided the sentiment. “The Bharatiya Janata Party’s victory in Jharkhand is a positive, in light of the rich mineral resources that can be properly utilised,” he said.
So far this year, foreign investors have been net buyers by Rs 97,890 crore.
“The outlook on the market is positive, and a pick-up in economic activity elsewhere could add to flows. It might not result in withdrawals, as feared by those who anticipate an interest rate rise in the US could lead to lower flows to emerging markets,” said Vijay Kedia, managing director, Kedia Securities.
