Sensex, Nifty break eight-day winning streak ahead of GDP data
Mumbai: Investors turned conservative on Tuesday as the Sensex broke its forward march of eight days after the participants chose not to lower their guard further ahead of September quarter gross domestic product (GDP) data.
The caution was partly because of the upcoming expiry of derivative contracts slated for Thursday. National output numbers are also due the same day. Counters such as consumer durables, pharma and oil and gas, and PSU stocks took the blows as investors pulled money off the table.
After opening a shade higher, the 30-share Sensex slipped into the red, but regained its composure and settled lower by 105.85 points, or 0.31%, at 33,618.59. The index had risen 964 points in the past eight sessions, spurred by unabated buying by domestic institutional investors (DIIs) and Moody’s India sovereign rating upgrade. The 50-share NSE Nifty too dropped 29.30 points, or 0.28%, at 10,370.25. During the day, it traded between 10,355.20 and 10,409.55.
“Investors were a little conservative ahead of the Q2 GDP data and F&O (futures and options) expiry slated as on Thursday. PSU banks underperformed due to profit booking after the recapitalisation-led rally,” said Vinod Nair, head of research, Geojit Financial Services Ltd.
Global shares offered no clear picture. A subdued trend in other Asian bourses amid uncertainty over the US tax bill made investors think twice. Concerns about sustained capital outflows by foreign funds lingered. “But broadly, the downside is protected as... the rupee continues to stay on the positive side,” added Nair.
NTPC fell the sharpest, plunging 1.88%, followed by Bharti Airtel. Others that brought down the key index were Infosys, Tata Motors, Sun Pharma and ONGC. Stock of Reliance Communications plunged 3.37% on nervous selling by investors amid reports that China Development Bank has filed insolvency case against the telecom firm, which the company has denied. But Maruti Suzuki, HDFC, Coal India and Asian Paints stayed in the green and absorbed the overall fall to an extent.
Elsewhere, it was a broadly lacklustre trade in Asian markets. European shares went up in early trade.
The BSE telecom index lost badly, down 1.30%. Consumer durables, technology and PSU indices followed. The broader markets reflected a better trend. The small- cap index firmed up 0.27% while the mid-cap one finished higher by 0.10%.
Foreign portfolio investors sold shares worth a net Rs424.77 crore on Monday, as per provisional data. DIIs bought equities worth a net Rs69.40 crore.