Sensex ends 3-day winning run, sheds 12 points on choppy trade

The benchmark Sensex snapped three consecutive sessions of gains to end flat, slipping 11.83 points to 31,209.79, while the broader Nifty managed to hold the key 9,600-level in volatile trade tracking negative global peers.

The Sensex swung over 187 points (both ways) during the session on alternate bouts of buying and selling by investors as they booked profits in recent gainers amid weak global cues on geopolitical concerns.

Sentiments took a beating after global markets tumbled as earlier gains were quashed by tensions on the Korean peninsula following North Korea's missile launch, brokers said. Concerns also lingered due to persistent capital outflows by foreign funds, they added.

"Market traded between gains and losses due to profit booking after yesterday’s rally and weak global market. Two domestic factors which could drive the market in the near-term are high valuation and Q1FY18 results which are likely to be muted due to de-stocking." Vinod Nair, Head of Research, Geojit Financial Services Ltd said.

The market remained bullish at the outset on sustained buying by participants after Fitch Ratings said the implementation of GST will remove domestic trade barriers and help boost GDP growth over the long term.

The four-slab Goods and Services Tax (GST) was rolled out from July 1. Under the new regime, taxes on various goods and serivces have been put under 5, 12, 18 and 28 per cent, while keeping essential commodities out.

The Sensex opened higher at 31,331.21 points on sustained buying activity and continued its advance to touch a high of 31,353.46 points.

However, it lost momentum on emergence of profit-booking in recent gainers towards the fag-end, as it slipped into the negative zone and hit a low of 31,166.37 before settling at 31,209.79, showing a marginal fall of 11.83 points, or 0.04 per cent, over its previous close.

The gauge had gained 387.30 points in the previous three straight sessions making a strong bet on GST.

The 50-share NSE Nifty too settled in the negative terrain by falling 1.70 points, or 0.02 per cent, to 9,613.30. Intra-day, it shuttled between 9,650.65 and 9,595.50.

Domestic institutional investors (DIIs) remained net buyers, purchasing shares worth Rs 954.34 crore, while Foreign portfolio investors (FPIs) sold shares worth Rs 804.67 crore yesterday, as per provisional data.

Global cues also were not conducive with other Asian markets turning lower as earlier gains were quashed.

As many as 21 scrips out of 30-share Sensex pack ended lower. Axis Bank was top loser, falling 2.08 per cent, to Rs 507 followed by Hero MotoCorp 2.04 per cent to Rs 3,699.95.

Other laggards included Dr Reddy's (1.88 per cent), ITC Ltd (1.52 per cent), Cipla (1.28 per cent), Lupin (1.04 per cent), Asian Paint (1 per cent), Coal India (0.84 per cent), Bharti Airtel (0.75 per cent) and M&M (0.68 per cent).

Bucking the trend, Reliance Industries rose 2.79 per cent to Rs 1,422.70 rose on lower global oil prices and capped the losses in key indices. HDFC Ltd gained 1.28 per cent to Rs 1,643 and Kotak Bank up 1.10 per cent at Rs 958.95.

Sector-wise, healthcare fell the most by losing 0.73 per cent, followed by FMCG 0.66 per cent, realty 0.64 per cent, auto 0.48 per cent, PSU 0.36 per cent, capital goods 0.30 per cent and bankex 0.25 per cent.

While the oil & gas index was up 0.56 per cent, IT rose 0.33 per cent and teck 0.11 per cent.

The broader markets too came under pressure after investors logged gains at higher levels pulling down the mid- cap index by 0.34 per cent and small-cap by 0.04 per cent.

Key indices in Asia such as Japan's Nikkei fell 0.12 per cent, Shanghai Composite Index shed 0.41 per cent and Hong Kong's Hang Seng lost 1.53 per cent.

European shares too were in the red in their early deals oncluding Frankfurt, Paris and London stock exchanges.