Indian equity markets changed gears in the dying
hours of trade to end a flat, underscoring the cautious undertone of markets on
penultimate session of F&O expiry. After trading lower for most part of the
day and then giving an impression of positive close, benchmark equity indices
ended just below the neutral line, as market-participants lacking conviction in
the fundamentals of markets, preferred booking profits ahead of F&O expiry.
Rupee’s slide to historic lows and global uncertainty kept investors wary of
investing into risky asset class such as equities, which undertaking a safer
approach bought safe haven instruments, viz bonds and gold. Additionally,
challenging global environment also added to investors’ woes. Nevertheless, the
markets recovered significant from day’s low on account of short-covering and
bargain-buying activities. By the end of trade, Sensex and Nifty, ended above
the 17,950 and 5250 psychological levels respectively. For the day, markets
logged highest ever turnover of Rs 4.46 lakh crore. However, broader indices
failing to match the recovery of their larger peers, ended with a cut of over a
percent.
Sentiment took a hit for the worse after Indian
currency continuing its inexorable slide for third successive session, hit
historic lows of 68/$ on growing concerns over potential increase in
government's subsidy burden following the passage of the food security bill
and, uncertainty over a possible US led military strike against Syria, which
pressured the equity markets across the globe. While, much of the
profit-booking was witnessed in Consumer Durables, Public Sector Undertaking
and Banking counters, traders found some value in stocks belonging to
Information Technology and Metal.
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