Sensex loses back to back, down 44 pts as F&O expiry looms

Mumbai :Markets continued to lie low for the second consecutive session as the benchmark BSE Sensex tripped by about 44 points to close at 25,775.74 as players churned positions amid a mixed trend in Asia and weakness in Europe.

There was caution all around as investors braced for the expiry of monthly derivatives contracts coming up on Thursday, which had a bearing on sentiment.

Markets are shut tomorrow on account of ‘Guru Nanak Jayanthi’.

The 30-share BSE Sensex after a weak start recovered briefly, mostly due to buying in realty, oil and gas, and PSU stocks and closed down 43.60 points, or 0.17 per cent, at 25,775.74.

The 50-share NSE Nifty ended lower by 17.65 points, or 0.22 per cent, at 7,831.60. During the session, it shuttled between 7,812.65 and 7,870.35.

“Indices traded sluggish throughout the day due to lack of any major cues. Investors seem to stay light on the positions on the penultimate day of the November derivative contracts and ahead of the start of the Winter Session of Parliament,” said Gaurav Jain, Director, Hem Securities.

The Sensex has lost 92.75 points in two straight sessions.

Sentiment, which was already subdued on disappointing quarterly earnings, took another hit from the off-loading of bets. Brokers said the rolled-overs to the next month expiry would come in below recent month’s expiries.

Sustained foreign capital outflows added to the jitters, they said.

Maruti Suzuki (down 2.05 per cent) tanked the most while L&T fell 1.94 per cent. Bajaj Auto, Sun Pharma, NTPC and Wipro too registered losses.

Hindustan Unilever, HDFC Ltd, RIL and Lupin ended higher, which limited the downside in the key indices.

Sector-wise, the BSE capital goods index suffered the most falling 1.20 per cent, followed by auto and IT.

The broader markets were better-off as the BSE small-cap ended 0.33 per higher and the mid-cap gained 0.08 per cent. Shares of Reliance Communication soared 9.29 per cent to Rs 71.15 on buzz of positive corporate reports.

Foreign portfolio investors (FPIs) net sold shares worth Rs 35.37 crore yesterday, provisional data showed.

A mixed trend prevailed in Asia as industrial metals were down in the dumps. European shares fell to a one-week low.

A Kremlin spokesman termed the incident “very serious”.

Pramit Brahmbhatt, Veracity Group CEO, said,”Failing to break yesterday’s high, Nifty lost key important support of 7,840 levels during the second half.”

In the 30-share Sensex pack, 22 ended lower.

“The market continues to be volatile as investors are cautiously positioning their trade before the F&O expiry. The commencement of Winter Session on the day of F&O expiry and RBI’s policy meet on December 1 are forcing investors onto the back foot,” said Vinod Nair, Head-Fundamental Research, Geojit BNP Paribas Financial Services Ltd.

The market breadth remained positive as 1,475 stocks ended higher, 1,182 finished in the red while 205 ruled steady. The total turnover was down at Rs 2,738.01 crore, from Rs 2,774.23 crore yesterday.