Nifty ends below 8,600 on August F&O expiry

Markets ended lower on Thursday, amid a volatile session, following the expiry of August derivative contracts and caution ahead of the US Federal Reserve's direction on key policy rates at a meeting scheduled for Friday.

US Federal Reserve Chair Janet Yellen  is scheduled to speak at the Kansas City Fed's annual Monetary Policy Symposium in Jackson Hole, Wyoming.

The S&P BSE Sensex ended down 224 points at 27,836 and the Nifty50 closed 58 points at 8,592. Broader markets pared intra-day gains to end lower. The BSE Midcap and Smallcap indices ended down 0.1%-0.4% each.

"The market was volatile and slid on the expiry day as investor started booking profits before Yellen’s speech.  FIIs were on the selling mode which could have added fears to the current consolidation phase. Further direction to the market will depend upon the outcome of the FED’s view on the interest rate trajectory." said Vinod Nair, Head of Research, Geojit BNP Paribas Financial Services.

Foreign portfolio investors were net sellers in equities worth a net Rs 39 crore on Wednesday as per provisional stock exchange data.

European shares eased on Thursday amid profit taking in healthcare stocks in addition to miners. The CAC-40, DAX and FTSE were down 0.5%-1% each.

Index heavyweights Infosys and HDFC were among the top losers.

SBI ended down nearly 2%. The state-owned banking major is planning to raise capital of up to Rs 11,100 crore through additional Tier-I (AT-1) bonds from domestic and international investors.

Other losers include, Adani Ports, Asian Paints, L&T, ICICI Bank and Reliance Industries among others.

State-owned engineering major BHEL witnessed short covering at lower levels to end over 3% higher.

Other gainers include, ITC, Axis Bank and Gail (India) among others.

Among other shares, Jubilant Life Sciences gained over 4% after the pharmaceutical company said it has received Abbreviated New Drug Application (ANDA) final approval for Felodipine Extended-Release tablets USP, 2.5 mg, 5 mg, and 10 mg, the generic version of Plendil tablets of AstraZeneca, which is used for the treatment of hypertension.

Welspun India ended 8% lower after rebounding in intra-day trades. The stock came under pressure on reports that its US-based client Bed Bath & Beyond has ordered an external audit of the textile products supplied by the Indian firm.

Natco Pharma gained 4% after hitting fresh lifetime high of Rs 704 on the Bombay Stock Exchange after the drug maker announced receipt of successful Establishment Inspection Report (EIR) for Chennai facility.

Monsanto India ended nearly 3% lower on reports that the company has withdrawn an application seeking approval for its next generation of genetically modified (GM) cotton seeds in India.