Key indices pare early gains, end flat

Key indices pare early gains, end flat
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Highlights

Sensex gyrates 959 pts; Selling in BFSI stocks, FII outflows weigh on trading

Mumbai: Erasing initial gains, benchmark indices Sensex and Nifty closed lower on Monday due to a sharp fall in Kotak Mahindra Bank and relentless foreign fund outflows. The 30-share Sensex declined by 73.48 points or 0.09 per cent to settle at 81,151.27 with 21 of its constituents ending lower and nine closing higher. The barometer shot up 545 points at the opening, but succumbed to selling pressure later and hit a low of 80,811.23. The index gyrated 958.79 points between the day’s high and the low level. The NSE Nifty dipped 72.95 points or 0.29 per cent to 24,781.10.

“The domestic market displayed considerable volatility, with key indices swinging between negative and positive terrain. Meanwhile, FIIs continued their strategic buying in China, while selling off in India, driven by weaker corporate earnings and valuation concerns. Concurrently, domestic Q2 earnings have been mostly underwhelming, with major private sector banks notably disappointing. However, DIIs have offered some support, mitigating the market’s decline,” said Vinod Nair, head (research), at Geojit Financial Services.

The BSE midcap gauge declined by 1.63 per cent and smallcap index went lower by 1.51 per cent. Among the indices, services fell by 1.92 per cent, while oil & gas (1.68 per cent), industrials (1.65 per cent), realty (1.52 per cent), metal (1.44 per cent) and commodities (1.40 per cent) were among the losers.

From the 30 Sensex firms, Kotak Mahindra Bank tanked over 4 per cent after the company's quarterly earnings failed to cheer investors. Bajaj Finserv, IndusInd Bank, Adani Ports, UltraTech Cement, Bajaj Finance, Tata Consultancy Services, Infosys, Bharti Airtel, Hindustan Unilever and JSW Steel were the other big laggards. HDFC Bank climbed nearly 3 per cent after the firm on Saturday reported a 6 per cent increase in September quarter net profit to Rs 17,825.91 crore on a consolidated basis. On a standalone basis, the largest private sector lender's post-tax net grew to Rs 16,820.97 crore during the reporting period, as against Rs 15,976.11 crore in the year-ago period.

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