Foreign funds’ inflows buoy Nifty

Indian equity markets closed on a flat-to-positive note today on the back of fresh inflows of foreign funds and healthy buying in automobile, banking and consumer durables stocks.

However, negative global cues and a weak rupee arrested further rise of the key indices.

According to market observers, investors remained cautious ahead of the five state assembly elections’ exit poll outcome.

Besides, investors were spooked ahead of the European Central Bank (ECB) monetary policy review later in the evening and the US Federal Open Market Committee (FOMC) meet next week.

The wider 51-scrip Nifty of the National Stock Exchange (NSE) inched up 2.70 points or 0.03 per cent to 8,927 points.

The barometer 30-scrip sensitive index (Sensex) of the BSE, which opened at 28,909.70 points, closed at 28,929.13 points — up 27.19 points or 0.09 per cent from the previous close at 28,901.94 points.

The Sensex touched a high of 28,986.72 points and a low of 28,815.02 points in intra-day trade.

The BSE market breadth was tilted in favour of bears — with 1,611 declines and 1,188 advances.

The S&P BSE mid-cap index edged lower by 0.21 per cent, and the small-cap index was down by 0.09 per cent.

On Wednesday, the NSE Nifty fell by 22.60 points or 0.25 per cent, to close at 8,924.30 points, and the BSE Sensex was down 96.77 points or 0.33 per cent at 28,902.79 points.

“Markets ended flat after a narrow range day on Thursday ahead of the assembly elections exit polls,” Deepak Jasani, Head – Retail Research, HDFC Securities, said.

“Major Asian markets ended on a negative note, barring the Nikkei and Jakarta indices. European indices like FTSE 100, CAC 40 and DAX too traded lower.”

Equity analysts pointed out that gains were capped due to a weaker rupee and rise in volatility.

“Markets have continued to keep an ear to election buzz, and is seen riding on positive expectations. But, with the VIX (Volatility Index) rising, there is a certainly a sense of cautiousness,” said Anand James, Chief Market Strategist, Geojit Financial Services.

“Dollar’s strength and pull back of commodity prices have appeared threatening.”

The Indian rupee weakened by two paise to 66.72 against a US dollar from its previous close of 66.70 to a greenback.

In contrast, there were fresh inflows of foreign funds in the equity markets.

Provisional data with exchanges showed that foreign institutional investors (FIIs) purchased stocks worth Rs 487.61 crore, while the domestic institutional investors (DIIs) invested Rs 10.98 crore.

Commenting on the sector-specific movement, Dhruv Desai, Director and Chief Operating Officer of Tradebulls, said: “IT stocks traded with mixed sentiments, while banking, pharma, auto, oil-gas and aviation stocks traded with sideways to bearish sentiments.”

“Textile and media-entertainment sector stocks traded with firm sentiments, whereas FMCG and cement sector stocks traded with mixed sentiments due to profit booking.”

Sector-wise, the S&P BSE automobile index surged by 121.71 points, followed by the banking index, which rose by 57.42 points, and the consumer durables index, which edged up by 46.78 points.

On the other hand, the S&P BSE healthcare index plunged by 98.04 points, the oil and gas index fell by 87.89 points, and the metal index slipped by 76.09 points.

Major Sensex gainers today were: Maruti Suzuki, up 1.67 per cent at Rs 5,961.90; State Bank of India (SBI), up 1.30 per cent at Rs 273.20; Axis Bank, up 1.16 per cent at Rs 516.10; Tata Motors, up 1.07 per cent at Rs 467.60; and Asian Paints, 0.87 per cent at Rs 1,031.10.

Major Sensex losers were: Dr Reddy’s Lab, down 5.01 per cent at Rs 2,708.60; Gail, down 2.27 per cent at Rs 379.40; Wipro, down 1.96 per cent at Rs 484.20; Adani Ports, down 1.96 per cent at Rs 300.75; and ONGC, down 1.56 per cent at Rs 189.75.

In the cash segment FIIs were net buyers to the tune of Rs 488 crores and DIIs net buyers to the tune of  Rs  11 crores.

FII positions in Index puts, futures and calls.