Markets keep a steady line amid foreign outflows

Stock markets closed little changed

today as blue chips consolidated, reflecting the turmoil in

global shares and FII capital outflows.

Though the opening was strong, investors subsequently

took profit off the table, worried about fast-changing

developments involving North Korea. In the end, the gains

turned out to be only marginal.

"Blue-chips have been consolidating in the last one month

in line with the havoc in the global market and outflows in

FII money. But undercurrent is strong as shown by the positive

return and outperformance of mid and small cap," said Vinod

Nair, Head of Research, Geojit Financial Services.

The broader NSE Nifty ended up 13.70 points, or 0.14 per

cent, at 9,929.90, after moving between 9,964.85 and 9,917.20.

The benchmark Sensex scaled the day's high of 31,814.96,

taking positive leads from Asian markets. But it succumbed to

selling pressure mid-afternoon before settling at 31,662.74,

up 0.77 point. The gauge had lost 148 points in the previous

session.

"The underline is that market is hoping for a strong

pick-up in earnings growth by H2 FY18, which is the fillip to

go beyond current level," Nair added.

Buying by domestic institutional investors (DIIs) kept a

big fall at bay despite capital outflows by foreign funds.

The rupee offered some relief, trading higher against the

dollar during the day.

M&M was the star of the day among Sensex components

rallying 2.02 per cent, followed by Bajaj Auto (1.37 per

cent). Other bright spots include Dr Reddy's, Sun Pharma and

Hero MotoCorp.

The BSE metal index was sectorally most active, with a

gain of 1.41 per cent. Auto, realty, capital goods too ended

in positive territory.

Broader markets put up a good show, with mid-cap and

and small-cap indices advancing up to 0.76 per cent.

Foreign funds remained stubborn in selling shares net Rs

1,353.02 crore. But domestic investors net purchased Rs 51.57

crore of shares yesterday, according to provisional figures.

Reliance Industries fell 0.41 per cent to close at Rs

818.90 after the stock adjusted for the bonus issue.

Key European indices traded firm.

 

(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)