Markets end lower ahead of inflation data, Sensex drops 235 points
Equity market benchmark indices Sensex and Nifty ended lower on Thursday due to selling pressure in index majors Reliance Industries, L&T and HUL as investors turned cautious ahead of the inflation data announcement.
Besides, weakness in the rupee and foreign fund outflows hit investor’s sentiment, traders said.
The 30-share BSE benchmark Sensex declined 236.18 points or 0.29 per cent to settle at 81,289.96. During the day, it dropped 314.5 points or 0.38 per cent to 81,211.64. The NSE Nifty dropped 93.10 points or 0.38 per cent to 24,548.70.
"Investors traded with caution ahead of the announcement of inflation and IIP data and steadily cut their equity bets. There is a lack of confidence amongst investors due to global uncertainty, rising US bond yields fuelling fund outflows, and persisting conflicts in the Middle East and West Asia," Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd, said.
Among the 30-share Sensex blue-chip firms, NTPC, Hindustan Unilever, Tata Motors, Maruti, Larsen & Toubro, Reliance Industries, Asian Paints and State Bank of India were the biggest laggards.
Bharti Airtel, IndusInd Bank, Tech Mahindra, Infosys, Adani Ports and Tata Consultancy Services were among the gainers.
"Markets closed slightly lower on the weekly expiry day, shedding nearly half a per cent amid mixed signals. The market awaits a fresh catalyst to resume its rebound, while rotational buying in key sectors like IT and banking keeps recovery hopes alive," Ajit Mishra - SVP, Research, Religare Broking Ltd, said.
The BSE smallcap gauge tanked 1 per cent, and the midcap index declined 0.56 per cent.
FMCG dropped 1.15 per cent, energy (1.03 per cent), industrials (0.83 per cent), consumer discretionary (0.81 per cent), oil & gas (0.73 per cent) and auto (0.70 per cent). IT, utilities, teck and BSE Focused IT were the gainers.
"The market continued to remain range-bound ahead of domestic CPI data and a weakening rupee. Though inflation is anticipated to drop, investors are maintaining a close vigil on the vegetable prices, which will determine the future rate trajectory. Meanwhile, the Nifty IT index reached a new high after US inflation data met expectations, boosting hopes for a Fed rate cut next week," Vinod Nair, Head of Research, Geojit Financial Services, said.
In Asian markets, Seoul, Tokyo, Shanghai and Hong Kong settled in the green. European markets were trading on a mixed note. Wall Street ended mostly higher in overnight trade on Wednesday.
The rupee depreciated by 4 paise to settle at an all-time low of 84.87 (provisional) against the US dollar on Thursday. Foreign Institutional Investors (FIIs) offloaded equities worth Rs 1,012.24 crore on Wednesday, according to exchange data.
Global oil benchmark Brent crude rose 0.30 per cent to USD 73.74 a barrel.The 30-share BSE benchmark rose by 16.09 points or 0.02 per cent to settle at 81,526.14 on Wednesday. The Nifty advanced 31.75 points or 0.13 per cent to settle at 24,641.80.
