Mkts in consolidation mode; auto, bank scrips pull down Sensex

The markets took to consolidation mode as the benchmark BSE Sensex gave up early gains to end 153 points lower at 31,138.21 today while the broader Nifty cracked below the 9,600-mark on profit booking, particularly in auto and banking sector stocks. ahead of GST rollout.

During the week, the Sensex gained 81.81 points, or 0.26 per cent, while the Nifty shed 13.10 points, or 0.13 per cent. The markets will remain closed on Monday on account of 'Id- ul-Fitr' (Ramzan Eid).

The 30-share Sensex rose over 75 points in morning trade and shot up to 31,365.39, but quickly lost momentum to hit the day's low of 31,110.39. It finally ended 152.53 points lower, or 0.49 per cent, at 31,138.21.

The Sensex had gained 7.10 points in yesterday's session.

The broader NSE Nifty moved between 9,647.65 and 9,565.30, before ending 55.05 points, or 0.57 per cent down at 9,574.95. This was Nifty's lowest close in a month.

"Market continued to consolidate as investors defer their participation and waiting for global headwinds to settle like concerns over volatile oil price. However, markets will continue to get support at lower levels due to reforms in banking sector, falling inflation and expectation of rate cut," Vinod Nair, Head of Research, Geojit Financial Services said.

Foreign portfolio investors (FPIs) bought shares worth a net Rs 192.68 crore yesterday, as per provisional data released by the stock exchanges.

Domestic institutional investors (DIIs) also bought shares worth a net Rs 455.21 crore.
Major laggards were Tata Motors DVR (2.18 per cent), Tata Motor (2.14 per cent), Hero MotoCorp (1.95 per cent), SBI (1.94 per cent), ONGC (1.56 per cent), TCS (1.47 per cent), M&M (1.44 per cent), Tata Steel (1.39 per cent), Kotak Bank (1.07 per cent), Maruti Suzuki (1.07 per cent) and HDFC Bank (1.05).

However, Sun Pharma rose 0.97 per cent, Wipro 0.79 per cent, ICICI Bank 0.71 per cent, Dr Reddy's 0.71 per cent, Cipla 0.39 per cent and Infosys 0.32 per cent.

Sector wise, the BSE auto index lost 1.54 per cent, PSU 1.50 per cent, oil&gas 1.13 per cent, consumer durables 1.09 per cent, capital goods 1.04 per cent, realty 0.89 per cent and bankex 0.74 per cent.

Overseas, Asian markets ended higher, with Japan's Nikkei rising 0.11 per cent and China's Shanghai Composite Index rose 0.33 per cent. Hong Kong's Hang Seng, however, fell 0.02 per cent.

Shares of Fortis Healthcare crashed about 13 per cent after Malaysia's healthcare services provider IHH Healthcare Berhad yesterday said it is not close to "concluding any negotiations" to buy controlling stake in Fortis Healthcare.

In broader markets, the BSE Mid-Cap index provisionally fell 1.21 per cent. The BSE Small-Cap index provisionally fell 1.46 per cent. The decline in both these indices was higher than the Sensex's decline in percentage terms.

The market breadth remained negative as 1,948 stocks ended lower, 676 closed higher while 132 ruled steady.

The total turnover on BSE amounted rose to Rs 7,395.04 crs from Rs 4,693.41 crore registered during the previous trading session.

European shares were down in late morning deals. Frankfurt, Paris and London stock exchanges were all trading in the negative terrain.

During the week, the market tried to continue its upswing supported by GST council relaxation of return filing timeline for an easy transition to GST. SEBI’s relaxed norm for takeover of stressed business and RBI’s less hawkish minutes were positive for the market. However, mired sentiment from global market and disruptions ahead of GST rollout overshadowed these positives which led market to give up gains to end flat.