Volatility on F&O expiry, global cues pull equities lower

IANS
Thursday, 22 February 2018

The barometer 30-scrip Sensitive Index (Sensex) of the Bombay Stock Exchange (BSE) closed lower by 25.36 points or 0.07 per cent at 33,819.50 points from its previous session's close.don

MUMBAI: Volatility infused by futures and options (F&O) expiry, along with negative global cues and a weak rupee, pulled the key Indian equity indices lower on Thursday.

The wider Nifty50 of the National Stock Exchange (NSE) closed on a flat-to-negative note -- down 14.75 points or 0.14 per cent at 10,382.70 points.

The barometer 30-scrip Sensitive Index (Sensex) of the Bombay Stock Exchange (BSE) closed lower by 25.36 points or 0.07 per cent at 33,819.50 points from its previous session's close.

The BSE market breadth was bearish with 1,714 declines and 1,010 advances.

In the broader markets, the S&P BSE mid-cap index edged lower by 0.54 per cent and the small-cap index by 0.43 per cent.

"Markets corrected marginally on Thursday as the Nifty traded in a narrow range. Volatility was seen in the afternoon session on the back of the derivatives expiry of the February series as traders rolled over their positions to the March series," Deepak Jasani, Head - Retail Research, HDFC Securities, told IANS.

"Major Asian markets closed on a negative note, barring the Shanghai index, while European indices like FTSE 100, DAX and CAC 40 traded in the red," Jasani added.

Vinod Nair, Head of Research, Geojit Financial Services, said: "Fed's hawkish stance on future rate-hike on account of improving economic activity and expiry-led volatility in domestic market impacted the sentiment."

"Rise in India's 10-year bond yield due to inflationary pressure and rupee depreciation is signalling cautious trade in the near term," added Nair.

On the currency front, the Indian rupee weakened by 29 paise to close at 65.04 against the US dollar from its previous close at 64.76.

In terms of investments, provisional data with the exchanges showed that foreign institutional investors sold scrips worth Rs 2,335.34 crore, while domestic institutional investors purchased stocks worth Rs 1,059.42 crore.

Sectorwise, the S&P BSE oil and gas index plunged by 224.95 points, followed by auto index by 220.53 points and consumer durables index by 197.01 points.

On the other hand, the S&P BSE IT index rose by 72.73 points, healthcare index by 51.98 points and banking index by 36.83 points.

Major Sensex gainers on Thursday were: Sun Pharma, up 3.32 per cent at Rs 542.15; Adani Ports, up 2.16 per cent at Rs 404.10; IndusInd Bank, up 1.83 per cent at Rs 1,624.45; Mahindra and Mahindra, up 1.76 per cent at Rs 720.90; and Kotak Bank, up 1.70 per cent at Rs 1,072.65.

Major Sensex losers were: Dr Reddy's Lab, down 2.19 per cent at Rs 2,121.30; ONGC, down 2.05 per cent at Rs 186.20; Power Grid, down 1.88 per cent at Rs 190.95; Tata Motors, down 1.59 per cent at Rs 358.55; and Maruti Suzuki, down 1.47 per cent at Rs 8,650.40.

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