Sensex snaps four day gaining streak, Nifty falls 38 points to 10,679 level

The Sensex broke its four-day winning streak to close over 73 points lower at 35,103 on Thursday as investors chose to trim their positions on weak global cues ahead of talks between China and the US on their trade dispute. Unabated capital outflows by foreign funds and lower-than-expected quarterly numbers by InterGlobe Aviation and some other companies too added to the caution, brokers said.

Investors kept an eye on high-level talks between China and the US on trade in Beijing today.

Back home, counters such as realty, capital goods, IT, teck, infrastructure, FMCG, consumer durables, oil and gas and auto suffered as participants pulled money off the table.

After opening higher, the 30-share Sensex quickly slipped into the red largely in line with weak Asian cues and hit a low of 35,020.08 before settling at 35,103.14, still down by 73.28 points, or 0.21 per cent.

The index had surged 675.15 points in the past four sessions, spurred by sustained buying by domestic institutional investors (DIIs) and encouraging quarterly earnings by some companies.

The 50-share NSE Nifty slipped below the 10,700-mark and finished at 10,679.65-down 38.40 points, or 0.36 per cent. During the day, it shuttled between 10,720.60 and 10,647.45.

Meanwhile, on a net basis, foreign institutional investors (FIIs) sold shares worth Rs 525.93 crore, while DIIs bought shares to the tune of Rs 165.84 crore in yesterday's trade, provisional data showed.

VK Sharma, head private client group & capital market strategy at HDFC Securities said, "Nifty fell for the second consecutive session, to close at 10679.65. Advance decline ratio remained very weak with 3 stocks declining against 1 stock rising. Support for the Nifty is seen at 10630, below which Nifty could extend the fall till 10560. As far as resistance is concerned, recent top of 10785 is a level to watch out for. Bank Nifty, which is currently placed at 25605 odd levels, has got strong support at 25400. Uncertainty related to Karnataka Elections and Iran- US nuclear deal will restrict the upside in the near term. The markets are likely to be in a wait and watch mode. In such a scenario, we advise taking some money off the table."
Sun Pharma (3.68%), NTPC (2.32%) and Tata Steel (1.84%) were the top gainers on Sensex.

Wipro (1.94%), Kotak Bank (1.90%) and Asian Paints (1.74%) were the top Sensex losers.

 

Market breadth was negative with 817 stocks closing higher against 1848 ending in the red on BSE.

Global markets

World stock markets were mixed on Thursday as investors analyzed the Fed's decision to keep interest rates unchanged and kept an eye out for developments from China-U.S. trade talks in Beijing.

European shares slipped in early trading. France's CAC 40 lost 0.3 percent to 5,155.00 and Germany's DAX fell 0.2 percent to 12,772.48. Britain's FTSE 100 dipped 0.1 percent to 7,539.62. Wall Street was poised to open higher. Dow futures added 0.2 percent to 23,871.00 and broader S&P 500 futures advanced 0.3 percent to 2,633.60.

Hong Kong's benchmark Hang Seng index dropped 1.2 percent to close at 30,313.37 and South Korea's Kospi dipped 0.7 percent to end at 2,487.25. The Shanghai Composite index rose 0.6 percent to 3,100.86 and Australia's S&P/ASX 200 advanced 0.8 percent to 6,098.30. Taiwan shares fell and Southeast Asian indexes were mostly lower. Japan's markets were closed for a holiday.