Markets end at one-month low on Sep F&O expiry

Nifty September F&O series ended lower after seven consecutive positive series with Metal Index falling the most

Benchmark share indices ended at one-month lows following the expiry of September derivative contracts weighed down by oil shares after the government deferred its decision on gas pricing till November 15. Further, metal and bank shares also witnessed selling pressure after the Supreme Court's verdict on coal block allocations.

The 30-share Sensex ended down 276 points at 26,468 and the 50-share Nifty ended down 91 points at 7,912.

Nifty September F&O series ended lower after seven consecutive positive series with Metal Index falling the most. The F&O turnover stood at Rs 5.3 lakh crore.

The total market turnover crossed the Rs 8.50 lakh crore for the first time ever.

Foreign portfolio investors were net sellers to the tune of Rs 794 crore in the cash market on Wednesday, as per provisional stock exchange data.

The Indian rupee was trading lower at Rs 61.19 to the US dollar compared to the previous close of Rs 60.96 on the back of month-end dollar demand from importers and weakness in domestic equities.

Asian markets ended mixed with Japanese shares rising the most in the region. The benchmark Nikkei ended up 1.3% amid a weaker yen that led to across the board buying with exporters shares leading the gains. Shanghai Composite and Straits Times ended flat while Hang Seng ended down 0.7%.

European shares were trading mixed after the euro weakened against the US dolalr. CAC-40 and DAX up 0.2-0.4% each while shares in London pared early gains and were trading with marginal losses.

The BSE Metal, Power, Realty, Bankex, Oil and Gas indices were the major sectoral losers down 2.5-3% each. However, the IT index was up 1%.

Reliance Industries and ONGC ended down over 3.3% each after the government deferred its decision on gas pricing till November 15.

State-owned banks witnessed selling pressure on concerns that advances to companies whose coal block allocations have been cancelled may lead to rise in non-performing assets. SBI, Bank of India, Bank of Baroda, PNB and Canara Bank, Andhra Bank ended down 3-12% each.

ICICI Bank ended down 2.5% on concerns over the private banking major's exposure to Jaiprakash Group. Among the state-owned banks which have given loans to the Jaiprakash Group include IDBI which slumped 11% and SBI.

In the metal pack, Hindalco, Tata Steel and Sesa Sterlite ended down 2.5-4% each with Jindal Steel dropping 7.6% as the company would be the most impacted by the SC verdict and concerns over huge penalty it would have to pay.

However, defensive shares ended firm with IT majors TCS and Infosys rising 1-3% each. In the pharma segment Dr Reddys Labs, Cipla ended up 2-2.5% each.

Among other shares, Shares of newly listed agrochemicals company Sharda Cropchem has surged 4% to Rs 263, in an otherwise weak market, after HDFC Mutual Fund bought nearly one million shares of the company from the open market.

Shares Jaypee Group companies such as Jaiprakash Associates, Jaiprakash Power Ventures Ltd (JPVL) and Jaypee Infratech plunged by up to 19% after Reliance Power called off a deal with Jaiprakash Power Ventures Ltd (JPVL) to buy the JVPL’s entire hydel power portfolio.

In the broader market, the BSE Mid-cap index ended down 2.4% and the Small-cap index ended down 3.2%.

Market breadth ended negative with 2,269 losers and 693 gainers on the BSE.