Indian equities close flat on mixed global cues (Roundup)

The Indian equity markets ended flat on Friday due to profit booking, disappointing macro economic data and mixed global cues.

Both the key indices closed the day's trade on a flat note, with healthy buying witnessed in banking and automobile stocks.

The wider 51-scrip Nifty of the National Stock Exchange (NSE) inched up a tad, by 1.85 points or 0.02 percent, at 8,220.80 points.

The barometer 30-scrip sensitive index (Sensex) of the BSE, which opened at 26,919.23 points, closed at 26,843.03 points -- down a negligible 0.11 points with no percentage change from the previous close at 26,843.14 points.

The Sensex touched a high of 27,008.14 points and a low of 26,792.07 points during the intra-day trade.

The BSE market breadth was skewed in favour of the bears -- with 1,554 declines and 1,078 advances.

The key Indian indices had closed at a fresh seven-month closing-high on Thursday. Both the key indices had ended with appreciable gains followed by short covering and lower-level value buying.

The Sensex had surged 129.21 points or 0.48 percent, while the NSE Nifty had gained 39 points or 0.48 percent.

Initially on Friday, the key indices opened on a high note, in sync with their Asian peers and in view of stable crude oil prices.

Asian shares surged on Friday as investors were cautious over a near-term Federal Reserve rate hike after the release of the US non-farm payrolls figures later on Friday evening.

Further, stable crude oil prices after the OPEC (Organisation of Petroleum Exporting Countries) meet failed to agree on output limits also aided the rise in key indices.

The European stocks traded marginally in the positive range as the European Central Bank (ECB) meet on Thursday decided to keep key rates unchanged.

Moreover, a disappointing PMI (Purchasing Managers' Index) data and caution ahead of the Reserve Bank of India (RBI) decisions next week influenced the markets during the day's trade.

According to market observers, global markets traded mixed during the week as the investors took cues from the US Federal Reserve chief's comments and manufacturing data released in China and Europe.

Expectations of a healthy monsoon could also be the trigger for the next rally in the markets.

"While both the Sensex and the Nifty opened the day firmly in the positive zone, they were unable to sustain the positive momentum and finally closed the day around the flat line," said Shreyash Devalkar, Fund Manager - Equities, BNP Paribas Mutual Fund.

"The Nikkei India Services Purchasing Managers' Index (PMI) fell to 51 in May 2016 from 53.7 in April 2016."

"However, the Indian Meteorological Department (IMD) brought in some cheer after it stuck to its preliminary forecast of above normal rains for the 2016 southwest monsoon season," he added.

In the day's trade, the foreign institutional investors (FIIs) turned net buyers, while the domestic institutional investors (DIIs) sold stocks.

Data with stock exchanges showed that the FIIs purchased scrip worth Rs 1,585.01 crore and the DIIs sold stocks worth Rs 393.21 crore.

Sector-wise, healthy buying was witnessed in banking, automobile, and oil and gas stocks, whereas scrip of consumer durables, capital goods and healthcare came under heavy selling pressure.

The S&P BSE banking index surged by 165.02 points, followed by the automobile index, which gained by 86.24 points; and the oil and gas index rose by 21.02 points.

On the other hand, the S&P BSE consumer durables index plunged by 204.25 points, followed by the capital goods index, which declined by 130.79 points; and the healthcare index fell by 110.88 points.

Major Sensex gainers during Friday's trade were Axis Bank, up 3.52 per cent at Rs 542.80; NTPC, up 2.04 per cent at Rs 147.80; Hindustan Unilever, up 1.86 per cent at Rs 884.90; Mahindra and Mahindra, up 1.56 per cent at Rs 1,353.45; and Bajaj Auto, up 1.55 per cent at Rs 2,635.

Major Sensex losers during the day's trade were Bharti Airtel, down 2.12 per cent at Rs 358.20; State Bank of India (SBI), down 2.02 per cent at Rs 196.50; Lupin, down 1.82 per cent at Rs 1,449.05; BHEL, down 1.67 per cent at Rs 117.95; and GAIL, down 1.46 per cent at Rs 370.10.

--IANS

ppg/ag/vt