Foreign funds outflow pulls equity markets down (Roundup)

Foreign fund outflows, along with caution ahead of the derivatives expiry and decline in global crude oil prices, pulled the Indian equity markets lower on Tuesday.

The wider 51-scrip Nifty of the National Stock Exchange (NSE) edged down 16.65 points or 0.19 per cent to 8,706.40 points.

The barometer 30-scrip sensitive index (Sensex) of the BSE, which opened at 28,373.02 points, closed at 28,223.70 points -- down 70.58 points or 0.25 per cent from the previous close at 28,294.28 points.

The Sensex touched a high of 28,432.74 points and a low of 28,179.34 points during the intra-day trade.

The BSE market breadth was tilted in favour of the bears -- with 1,430 declines and 1,254 advances.

On Monday, the key indices had plunged on the back of negative global cues. The barometer index had receded by 373.94 points or 1.30 per cent, while the NSE Nifty declined by 108.50 points or 1.23 per cent.

Initially on Tuesday, the benchmark indices opened in the green in sync with their Asian peers.

Besides, short covering and value buying kept the equity markets buoyed. The gains were wiped-off during the last hour of the day's trade as the European markets turned bearish.

Moreover, investors' risk-taking appetite remained subdued as caution prevailed ahead of an upcoming meet of the Organisation of the Petroleum Exporting Countries (Opec) producers in Algeria to discuss oil production cuts.

In addition, investors' sentiments were dented on the back of upcoming F&O expiry slated for Thursday, lower crude oil prices and an outflow of foreign funds.

However, the Indian rupee appreciated by 12 paise to 66.49 against a US dollar from its previous close of 66.61 to a greenback.

"Negative European markets, lower crude oil prices and F&O dynamics pulled the key Indian indices down," Anand James, Chief Market Strategist at Geojit BNP Paribas Financial Services, told IANS.

"Selling by foreign investors in anticipation of global volatility also dented sentiments."

According to Dhruv Desai, Director and Chief Operating Officer of Tradebulls, the CNX Nifty traded with bearish sentiments on selling pressure from traders.

"Bearish USD/INR futures prices provided support to the Nifty at lower levels. IT stocks traded with mixed sentiments but managed to recover from lower levels in the second half of the session," Desai said.

"Banking and auto stocks traded with mixed sentiments. Textile and aviation stocks traded down on profit booking."

In terms of investments, provisional data with exchanges showed that the foreign institutional investors (FIIs) sold stocks worth Rs 155.76 crore, whereas the domestic institutional investors (DIIs) purchased scrip worth Rs 90.67 crore.

Sector-wise, the S&P BSE capital goods index plunged by 167.58 points, followed by the banking index, which edged down by 105.91 points, and the automobile index fell by 104.88 points.

On the other hand, the S&P healthcare index edged up by 96.91 points, the IT index rose by 71.37 points, and the consumer durables index gained 33.92 points.

Major Sensex gainers during Tuesday's trade were: Lupin, up 1.26 per cent at Rs 1,513.90; Tata Consultancy Services (TCS), up 1.24 per cent at Rs 2,430.70; Wipro, up 1.17 per cent at Rs 484.40; Asian Paints, up 0.90 per cent at Rs 1,191; and Cipla, up 0.54 per cent at Rs 607.45.

Major Sensex losers were: Adani Ports, down 2.20 per cent at Rs 264.50; Bharti Airtel, down 2.01 per cent at Rs 314; Larsen and Toubro (L&T), down 1.99 per cent at Rs 1,439.50; ONGC, down 1.20 per cent at Rs 247.50; and Axis Bank, down 1.19 per cent at Rs 541.10.

--IANS

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