Equity markets close flat, cede gains on profit booking (Roundup)

The Indian equity markets closed flat on Friday as investors were seen reluctant to chase prices after tension between India and Pakistan escalated.

After Thursday's sharp falls, key indices toed a flat line before a bout of value buying propelled them higher, only to close on a flat-to-positive note due to profit booking.

The wider 51-scrip Nifty of the National Stock Exchange (NSE) edged up 19.90 points or 0.23 per cent to 8,611.15 points.

The barometer 30-scrip sensitive index (Sensex) of the BSE, which opened at 27,807.82 points, closed at 27,865.96 points -- higher by 38.43 points or 0.14 per cent from the previous close at 27,827.53 points.

The Sensex touched a high of 27,955.21 points and a low of 27,716.78 points during the intra-day trade.

The BSE market breadth was skewed in favour of the bulls -- with 2,041 advances and 646 declines.

On Thursday, the key Indian equity indices took a sharp fall after the Indian Army said it had carried out surgical strikes on terror launch pads across the Line of Control (LoC) in Jammu and Kashmir, inflicting "significant casualties".

The barometer index had ended with a loss of 465.28 points, or a 1.64 per cent, while the NSE Nifty closed lower by 153.90 points, or 1.76 per cent.

Initially on Friday, the benchmark indices opened on a lower note as sentiments were subdued on concerns over escalation of tension between India and Pakistan after Thursday's announcement by the Indian Army.

Besides, weak European and Asian markets, as well as an outflow of foreign funds, suppressed the domestic markets.

Moreover, caution prevailed ahead of the US jobs data and the Reserve Bank of India (RBI) monetary policy scheduled for next week.

However, value buying at lower levels and short covering arrested the falls and helped the key indices to pare their losses.

In addition, a recovery in rupee, which appreciated by 23 paise to 66.62 against a US dollar from its previous close of 66.85 to a greenback, kept the equity markets buoyed.

"The markets traded with volatility as investors were not willing to push prices further," Anand James, Chief Market Strategist at Geojit BNP Paribas Financial Services, told IANS.

"However, yesterday's falls had attracted some value buying, which arrested the falls and the key indices recovered from the days' lows. Gains were capped on the back of lower European and Asian markets."

According to Dhruv Desai, Director and Chief Operating Officer of Tradebulls, the CNX Nifty traded with volatile sentiments.

"IT stocks failed to sustain at higher levels and traded down. Banking, pharma and auto stocks witnessed recovery from lower levels in the second half of the session due to short covering," Desai said.

"Oil-gas and textile stocks traded firm on buying support from traders. Aviation and FMCG stocks traded firm on short covering."

In terms of investments, provisional data with exchanges showed that the foreign institutional investors (FIIs) sold stocks worth Rs 1,028.31 crore, whereas the domestic institutional investors (DIIs) purchased scrip worth Rs 1,560.29 crore.

Sector-wise, all the 19 sub-indices of the BSE witnessed healthy buying, except the FMCG index, which fell by 11.78 points.

The S&P BSE automobile index surged by 294.63 points, followed by the oil and gas index, which rose by 190.33 points, and the banking index gained by 136.06 points.

Major Sensex gainers during Friday's trade were: Gail, up 3.06 per cent at Rs 374.05; Mahindra and Mahindra (M&M), up 3.06 per cent at Rs 1,405.95; ONGC, up 2.19 per cent at Rs 256.70; Tata Steel, up 1.78 per cent at Rs 374.40; and Tata Motors, up 1.66 per cent at Rs 534.75.

Major Sensex losers were: Cipla, down 3.44 per cent at Rs 580.25; ITC, down 1.63 per cent at Rs 241.55; Coal India, down 1.45 per cent at Rs 322.55; Hindustan Unilever (HUL), down 1.12 per cent at Rs 867.80; and Dr. Reddy's Lab, down 0.90 per cent at Rs 3,108.70.

--IANS

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