Market moved to the back-foot for the second straight session today as the Sensex slipped another 70 points to 28,743, with all eyes turning to release of GDP estimate by the government. Investors looked forward to the December quarter GDP data to find out if demand took a knock from Prime Minister Narendra Modi’s surprise decision to recall high-value currency notes in November last year.
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The 30-share index, which had lost 80.09 points in the previous session, fell further by 69.56 points, or 0.24 per cent, to 28,743.32. The broader NSE Nifty eased by 17.10 points, or 0.19 per cent, to close at 8,879.60. It moved between 8,914.75 and 8,867.60 intra-day.
“GDP data release as well as Fed speeches kept traders on the backfoot. Markets were also waiting with interest for Donald Trump’s address of joint session of the Congress tonight, which might throw light on plans on tax reform and infrastructure spending,” said Anand James, Chief Market Strategist, Geojit Financial Services. Idea Cellular managed to close higher after falling nearly 6.5 per cent in early trade following reports that Providence Equity Partners is likely to exit the telecom firm by selling its 3.33 per cent stake. But the smallcap index rose 0.59 per cent and mid-cap 0.14 per cent.
Auto companies such as Bajaj Auto, Hero MotoCorp, Maruti Suzuki and Tata Motors lost up to 1.56 per cent ahead of monthly sales figures for February to be released on Wednesday. Coal India, NTPC, TCS, ICICI Bank, ITC, ONGC, Axis Bank, PowerGrid and HDFC were other laggards. However, buying in select stocks such as Bharti Airtel, Asian Paints, Adani Ports, M&M, Lupin, Sun Pharma, Tata Steel, SBI and Infosys capped the downside.
Foreign capital outflows also affected the market sentiment. Foreign funds net sold shares worth of Rs 145.55 crore yesterday, as per provisional data. Other Asian markets ended mixed as key indices like Hong Kong and Singapore fell while Japan’s Nikkei and the Shanghai index moved up. In Europe, London’ FTSE, Paris CAC 40 and Frankfurt lost in their early session.
In the domestic market, 20 scrips out of the 30-share Sensex ended lower. Oil and gas fell 1.34 per cent, followed by PSU, FMCG, IT and auto. Realty, capital goods, metal and power went up by up to 1.44 per cent. The market breadth, indicating the overall health of the market, was positive as 1,470 stocks ended higher, 1,320 declined and 216 ruled steady.
The total turnover on BSE amounted to Rs 4,988.27 crore, up from Rs 3,471.88 crore registered during the last trading session.
“With nearly Rs 7,000 crore worth of IPOs about to hit markets, investors may be in wait mode, but with major initiatives being mooted to boost Make in India programme, markets do not show signs of cracking,” added James.