Indian equities slip on profit booking, negative domestic cues (Roundup)

Mumbai, Dec 12 (IANS) Profit booking, risks of upcoming global economic events and negative domestic cues, pulled the Indian equities markets lower on Monday.

Investors’ sentiments were subdued by sombre domestic cues, such as negative macro-data on industrial output and deadlock over the contours of Goods and Services Tax (GST) framework.

Besides, the upcoming monetary policy review in the US and Britain spooked investors.

However, the domestic equity markets were suppresed by a surge in oil prices post the agreement between OPEC (Organisation of the Petroleum Exporting Countries) and non-OPEC members, and an outflow of foreign funds.

The key indices, which opened on a lower note in sync with their Asian peers, closed the day’s trade with losses of around a per cent each.

The wider 51-scrip Nifty of the National Stock Exchange (NSE) slipped by 90.95 points or 1.10 per cent to 8,170.80 points.

Similarly, the barometer 30-scrip Sensitive Index (Sensex) of the BSE, which opened at 26,725.31 points, closed at 26,515.24 points — down 231.94 points or 0.87 per cent from the previous close at 26,609.83 points.

The Sensex touched a high of 26,725.31 points and a low of 26,468.59 points during the intra-day trade.

The BSE market breadth was tilted in favour of the bears — with 1,533 declines and 1,097 advances.

On Friday, the equity markets were marginally lifted by firm global cues, coupled with short covering and higher crude oil prices.

The barometer index was up 52.90 points or 0.20 per cent, while the NSE Nifty edged up by 14.90 points or 0.18 per cent.

“Indian markets ended sharply lower on Monday on lower volumes due to sharp rise in oil prices and poor IIP (Index of Industrial Production) numbers that came out on Friday evening,” Deepak Jasani, Head of retail research, HDFC Securities, told IANS.

“The markets await CPI (Consumer Price Index) numbers for November and the decision of US Fed on interest rates. After a failed intra-day recovery, the markets ended close to the lows of the day.”

As per SMC Global Securities, along with negative IIP data, the GST (Goods and Services Tax) Council’s inability to reach a consensus on the clearance of the draft GST law in its meeting on Sunday, hampered the risk-taking appetite.

“Caution ahead of the US FOMC (Federal Open Market Committee) meet during the week led investors to book profit at higher levels,” the stock brokerage firm said.

The US Federal Reserve FOMC’s rate setting meeting is slated to be held on Wednesday, when it is widely expected to announce a 25 basis points (BPS) interest rate hike.

A hike can potentially lead foreign portfolio investors (FPI) away from emerging markets such as India, and dent the business margins of corporate sector, as access to capital from the US will become more expensive.

In terms of investments, provisional data with exchanges showed that the foreign institutional investors (FIIs) sold stocks worth Rs 94.45 crore, while the domestic institutional investors (DIIs) divested scrip worth Rs 266.20 crore.

According to Dhruv Desai, Director and Chief Operating Officer of Tradebulls, banking, auto, oil-gas and textile stocks traded with bearish sentiments, whereas pharma stocks traded with mixed sentiments due to profit booking at higher levels.

“Aviation stocks traded with bearish sentiments tracking higher crude oil futures prices in global markets. Cement, FMCG and power stocks also traded with bearish sentiments due to selling pressure,” Desai said.

Sector-wise, all the 19 sub-indices of the BSE ended in the red, led by the S&P BSE banking index, which plunged by 356.85 points, followed by the automobile index, which receded by 353.74 points, and the oil and gas index, which fell by 138.10 points.

Major Sensex gainers on Monday were: ONGC, up 1.43 per cent at Rs 311.30; NTPC, up 0.82 per cent at Rs 165.45; Tata Consultancy Services (TCS), up 0.58 per cent at Rs 2,206.25; Sun Pharmaceuticals, up 0.49 per cent at Rs 676.30; and Larsen and Toubro (L&T), up 0.26 per cent at Rs 1,365.

Major Sensex losers were: Asian Paints, down 3.33 per cent at Rs 910.25; Axis Bank, down 2.56 per cent at Rs 444.60; Bajaj Auto, down 2.52 per cent at Rs 2,651; Tata Motors, down 2.05 per cent at Rs 454.55; and Hero MotoCorp, down 1.97 per cent at Rs 3,216.55.