Sensex, Nifty decline due to profit taking, close FY22 with over 18% gains

Benchmark stock indices Sensex and Nifty pared their early gains to settle lower in choppy trade on the last day of the 2021-22 fiscal on Thursday mainly due to profit-taking in Reliance Industries, Infosys and HDFC Bank after a three-day rally.

Ending its three-day winning run, the 30-share BSE Sensex declined by 115.48 points or 0.20 per cent to settle at 58,568.51 amid the expiry of monthly derivatives contracts. During the day, it touched a high of 58,890.92 and a low of 58,485.79.

The broader NSE Nifty declined by 33.50 points or 0.19 per cent to settle at 17,464.75 with 30 of its stocks ending with losses.

For 2021-22 fiscal, the BSE Sensex jumped 9,059.36 points or 18.29 per cent while the Nifty rallied 2,774.05 points or 18.88 per cent.

"Even as markets ended the last day of the financial year in a rather quiet mood, it has delivered a 19 per cent return this year on the Nifty with two sectoral indices - metals and media returning over 50 per cent this year.

"On the broader market as well, both the midcap-100 and smallcap-100 delivered over 25 per cent return this year. Such returns in a year when FPI's have pulled out big money highlights the confidence of the Indian investor amidst a slew of headwinds," according to S Ranganathan, Head of Research at LKP Securities.

Among the 30-share pack, Reliance Industries fell the most by 1.46 per cent. Wipro declined by 1.44 per cent, Dr Reddy's by 1.04 per cent and Sun Pharma by 0.60 per cent.

HDFC Bank, UltraTech Cement and Infosys also ended down.

On the other hand, HUL rose the most by 1.66 per cent, followed by Mahindra & Mahindra by 1.59 per cent, IndusInd Bank by 0.93 per cent, Bharti Airtel by 0.80 per cent, ITC by 0.66 per cent and Titan by 0.5 per cent.

Axis Bank, which announced the acquisition of the India retail business of US-based Citi, spurted by 1.39 per cent.

In the previous trade, the 30-share BSE barometer index surged 740.34 points or 1.28 per cent to settle at 58,683.99. Similarly, the NSE Nifty climbed 172.95 points or 1 per cent to settle at 17,498.25.

In the broader market, the BSE smallcap index gained 0.31 per cent and the midcap jumped 0.29 per cent.

"Investors followed global market cues, which were mostly weak as most of them had rallied in the last few sessions on fall in crude oil prices and expectations of some solution to the Russia-Ukraine conflict. After seeing sharp gyration during the week, investors exercised caution with a negative bias on the expiry day," said Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd.

Harsh Parekh, Technical Analyst, Bonanza Portfolio, said "Indian equity indices opened today on a positive note on the back of a weak US dollar and FPI turning buyers. 

But indices turned volatile in afternoon trade and ended the three-day winning run." In Asia, equity exchanges in Shanghai, Tokyo and Hong Kong ended lower, while Seoul settled with gains. Markets in Europe were mostly trading lower.

Stock exchanges in the US ended on a negative note in the overnight session.

Meanwhile, international oil benchmark Brent crude tumbled 5.09 per cent to USD 107.68 per barrel on reports that the US was considering releasing a record 180 million barrels of oil from strategic reserves.

Foreign Institutional Investors (FIIs) were buyers as they bought shares worth Rs 1,357.47 crore on a net basis on Wednesday, according to stock exchange data.