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Profit booking curb gains, markets end flat

By FnF Desk | PUBLISHED: 09, Jul 2016, 19:54 pm IST | UPDATED: 09, Jul 2016, 19:56 pm IST

Profit booking curb gains, markets end flat
Mumbai: Indian equity markets fell prey to bears, as profit booking, negative global cues and a weak rupee arrested their meteoric rise during the week ended Friday.

The key indices concluded the week on a flat note -- marginally in the red -- despite value buying, a healthy monsoon and a firm rupee.

The 30-scrip sensitive index (Sensex) of the BSE closed the week's trade with a marginal loss of 18.01 points or 0.06 per cent at 27,126.90 points.

Similarly, the 51-scrip Nifty of the National Stock Exchange NSE dropped to 8,323.20 points -- down 5.15 points or 0.06 per cent.

"The week which has just gone by was really boring after the exciting run up to Brexit and  post-Brexit turmoil followed by a smart recovery in markets globally," Pankaj Sharma, Head of Equities , Equirus Securities, told news agencies.

"The Indian markets operated in a very narrow range this week as there was really nothing that significant which could have provided direction to them."

However, the benchmark indices had a flying start to the week, as they reached new 2016 closing high levels. At that time, the equity markets had gained for six consecutive sessions.

But, the positive sentiment was soon curbed as investors resorted to booking profits on the back of mixed global cues, ignoring the healthy progress of monsoon rains.

Further, uncertainties ahead of key quarterly results and upcoming global event risks such as the release of US FOMC minutes and non-farm payrolls' data eroded investors' confidence.

Nevertheless, there were certain positive domestic cues like prospects of more EPFO (Employees Provident Fund Organisation) funds being invested in the equity markets, as well as government's plans to offload stake in SUUTIs (Specified Undertaking of Unit Trust of India).

Although these prompted some value buying to lift prices, the equity markets were not able to recover back into the green.

Dhruv Desai, Director and Chief Operating Officer of Tradebulls said that the Indian equity markets traded with bearish sentiments last week mainly due to profit booking and mixed global markets.

"Sentiments came under pressure with the report that growth in India's services firms fell to a seven-month low of 50.3 in June as compared to the previous month of May as new business grew at its slowest pace in the previous 11 months," Desai told news agencies.
The equity markets were closed on Wednesday on the occasion of Eid-ul-Fitr.

"The BSE Sensex was down by 0.06 per cent whereas Nifty was down by 0.06 per cent which remained flat week on week. The BSE midcap index rose by 0.19 per cent and smallcap index rose by 0.76 per cent," Agarwal said.

Sector wise, the automobile index was up 0.63 per cent, followed by the healthcare index (0.43 per cent) and the consumer discretionary goods and services index (0.23 per cent).

On the other hand, the telecom index was down by 2.20 per cent, the capital goods index by 0.99 per cent, and the oil and gas index by 0.98 per cent.

The figures from the National Securities Depository (NSDL) showed that foreign portfolio investors were net buyers of equities worth Rs 525.32 crore, or $78.17 million from July 4-8.
Even after the fresh influx of foreign funds, the Indian rupee weakened by five paise to 67.37 against a US dollar from its previous week's close of 67.32.