Mumbai: Key Indian equity indices plunged Thursday to close with substantial losses as data showing a widened fiscal deficit for the first seven months of 2017-18, along with subdued Asian markets and volatility infused by November futures and options (F&O) expiry, subdued investors’ sentiments.
Market observers pointed out that investors traded with caution on ahead of the second quarter gross domestic product (GDP) data announcement. Heavy selling pressure in banking, auto and metal stocks added to the downward slide.
On a closing basis, the wider Nifty50 of the National Stock Exchange (NSE) fell by 134.75 points or 1.30 per cent to 10,226.55 points.
The barometer 30-scrip Sensitive Index (Sensex) of the BSE, which opened at 33,542.50 points, closed at 33,149.35 points — down 453.41 points or 1.35 per cent — from Wednesday’s close.
The BSE market breadth was bearish — 1,479 declines and 1,207 advances.
“Markets ended sharply lower Thursday as the Nifty broke down from a consolidation range. Investors turned cautious ahead of release of economic data on GDP. Fiscal deficit number for April-October dented sentiments,” Deepak Jasani, head, retail research, HDFC Securities, said.
Official data released during market hours showed that India’s budgetary fiscal deficit for the first seven months of 2017-18 stood at 96.1 per cent — Rs 5.25 lakh crore — of the full year’s target of Rs 5.46 lakh crore.
“It was also the expiry day of the November near-month series. Turnover on the NSE F&O segment was high at Rs 15 lakh crore almost matching the September derivatives expiry day volumes on September 28,” Jasani added.
The S&P BSE mid-cap index closed lower by 0.55 per cent, whereas the small-cap index was higher at 0.10 per cent.
Vinod Nair, head of research, Geojit Financial Services, said: “Market slid and rupee depreciated as widened fiscal deficit and expectation of extension in oil production cut from OPEC (Organisation of the Petroleum Exporting Countries) influenced investors to offload funds from the market.
“Today’s F&O expiry led volatility and selling in other Asian market hurt the sentiment, banks underperformed and metal lose the sheen,” he added.
On the currency front, the rupee weakened by 15 paise to close at 64.46-47 against the US dollar from its previous close at 64.31-32.
Sector-wise, the S&P BSE banking index declined by 548.72 points, followed by auto index by 250.23 points and metal index by 154.35 points.
On the other hand, the S&P BSE realty index was up by 26.43 points, consumer durables index by 13.48 points and telecom index by 5.98 points. (IANS)
