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Benchmark indices ended on a negative note on Friday, after recording fresh highs during the morning session, amid profit-booking.
The volatility index rose 5.68 per cent to 15.23, indicating caution among traders.
Market opened on a positive note despite weak global cues. However, indices soon erase all gains, witnessing profit-booking across counters, especially metals and PSU Bank stocks. However, heavyweight financials scored impressive gains. Investors remained cautious ahead of the 45th meeting of the Goods and Service Tax Council Council today.
The BSE Sensex which recorded an all-time high of 59,737.32 during the morning session, closed at 59,015.89, down 125.27 points or 0.21 per cent. It recorded an intraday low of 58,871.73. The Nifty 50 closed at 17,585.15, down 44.35 points or 0.25 per cent after recording a fresh high of 17,792.95. It recorded an intraday low of 17,537.65.
Breadth turns negative
The breadth of the market turned in favour of the decliners with as many as 2,065 stocks declining on the BSE, as compared to 1,231 stocks that advanced while 146 remained unchanged. Furthermore, 278 stocks hit the upper circuit as compared to the 224 stocks that were locked in the lower circuit. Besides, 234 stocks touched a 52-week high level and 21 touched a 52-week low.
S Ranganathan, Head of Research at LKP securities, said, while the pace of vaccinations and encouraging export data helped bulls get Sensex closer to the 60K mark amidst the FTSE & MSCI rebalancing of flows. However, profit taking took away all the gains ahead of the GST Council Meet. Even as the BFSI biggies held fort today, the cut in the small & midcap indices weakened market breadth, he added.
Narendra Solanki, Head- Equity Research (Fundamental), Anand Rathi Shares & Stock Brokers said, “Indian stock markets opened positive, later traded in and out of positive terrain in the afternoon session. Buying in frontline stocks such as Bajaj Finserv, Kotak Mahindra and Bajaj Finance were aiding sentiment while selling in Tata Steel, SBI and NTPC kept the gains in the markets in check.”
The upside remain capped as traders were cautious as Finance Minister Nirmala Sitharaman is chairing the 45th meeting of the Goods and Service Tax Council Council today. The meeting will be the first in-person meeting between the Union Finance Minister and State Finance Ministers in two years. In the previous month, GST revenue collection stood at ₹1.12 lakh crore this was lower than the ₹1.16 lakh crore collected in July but was still better than the year-ago period. Further, the GST council may also discuss bringing petrol and diesel under the GST regime, added Solanki.
Kotak Bank, HDFC Bank, Bharti Airtel, Eicher Motor and Maruti were the top gainers on the Nifty 50 while Tata Steel, Coal India, State Bank of India, TCS and Hindalco were the top laggards.
PSU Bank stocks witness profit-booking
PSU Bank stocks gained focus on Friday as the Centre has proposed a ₹30,600-crore back-stop to extend as guarantees to the Security Receipts to be issued by National Asset Reconstruction Company Ltd (NARCL), or the so-called “bad bank,” which will be valid for five years.
State Bank of India, which touched a lifetime high of ₹471.90 in early deal, closed 2.25 per cent lower on the NSE amid profit-booking.
Vinod Nair, Head of Research at Geojit Financial Services, said, "Despite a strong opening, domestic indices gave up early gains to trade flat driven by profit booking and mixed global sentiments. PSU Banks were heavily wounded by profit booking although the government approved a guarantee of ₹30,600 crores to the National Asset Reconstruction Company Ltd with an aim to clean stressed assets from the banking sector. Global markets traded cautiously bracing for the Fed Reserve and Bank of England policy meetings next week."
Financial Services gain
On the sectoral front, a majority of indices closed in the red. Financial Services remained in focus through the day while Nifty Bank and Nifty Private Bank also rebounded sharply. Meanwhile, metals, PSU Bank, Realty, Pharma and Oil & Gas indices dragged. IT and FMCG also faced pressure in the second half.
Nifty Financial Services was up 0.65 per cent at closing. Nifty Bank and Nifty Private Bank closed 0.38 per cent and 0.24 per cent higher, respectively.
Meanwhile, Nifty PSU Bank was down 2.96 per cent. Nifty Metal was down 2.38 per cent. Nifty Pharma and Nifty Healthcare Index were down 0.94 per cent and 1.02 per cent, respectively Nifty Realty was down 2.35 per cent while Nifty Oil & Gas was down 1.42 per cent. Nifty IT was down 0.57 per cent while Nifty FMCG was down 0.51 per cent.
Broader indices
Broader indices also closed in the red as mid-caps and small-caps also witnessed selling pressure.
Nifty Midcap 50 was down 1.19 per cent while Nifty Smallcap 50 was down 0.74 per cent.
The S&P BSE Midcap was down 1.14 per cent while the S&P BSE Smallcap was down 1.06 per cent.
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