Sensex ends 43 points lower, Nifty at 10,614 ahead of derivatives expiry tomorrow

The Sensex and Nifty ended lower, weighed down by jittery global stocks on fears of repeat elections in the euro zone`s third-largest economy, Italy, with investors trimming exposure to riskier assets. The cut in India's 2018 GDP growth forecast by Moody's also affected sentiment.

Short-covering by speculators ahead of May derivatives expiry tomorrow and recovery in the rupee also moved the markets today. 

The Sensex ended at 34,906.11, down 43.13 points, or 0.12 per cent, while the Nifty settled 18.95 points, or 0.18 per cent, lower at 10,614.35. During the session, it moved between 10,648.70 and 10,558.45.

"Market traded in a negative bias due to volatility in global market and it managed to trim some losses towards close owing to expiry led short covering. Q4FY18 GDP data will unveil tomorrow and the consensus is showing a growth of 7.4 per cent. Volatility in oil price and the impact on fiscal path are the major risk factors," said Vinod Nair, Head of Research, Geojit Financial Services.

Moody's Investors Service today cut India's 2018 growth forecast to 7.3 per cent from the previous estimate of 7.5 per cent, saying the economy is in cyclical recovery but higher oil prices and tighter financial conditions will weigh on the pace of acceleration.

The major gainers on the Sensex were Mahindra and Mahindra (M&M), Coal India, YES Bank, Kotak Mahindra Bank and Hindustan Unilever, while Tata Motors (DVR), Tata Motors, ICICI Bank, Bajaj Auto, Axis Bank and Larsen & Toubro were the major losers.

On the Nifty, the top gainers were M&M, Bajaj Finance and Coal India and the major losers were Hidustan Petroleum, Hindalco Industries and Grasim Industries.

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Meanwhile, foreign portfolio investors (FPIs) sold shares worth a net of Rs 407.33 crore, while domestic institutional investors (DIIs) bought shares worth Rs 578.38 crore yesterday, provisional data showed. 

Overseas, Italy's political crisis and renewed trade war fears sent world stocks lower for the sixth day in a row, though hopes that Italy could avoid a new election helped European markets stage a mini-bounce from one of their worst selloffs in years.

Oil prices meanwhile struggled as expectations grew that Saudi Arabia and Russia would pump more oil to counter potential supply shortfalls from Venezuela and Iran, even as US output has surged in recent years. 

Brent futures traded around $75.50 per barrel, well off recent 3-1/2-year highs above $80. 

(With inputs from Reuters)