Capital outflows, global cues weigh on markets
The domestic markets were at a loss for direction for the second day as the BSE Sensex on Wednesday moved in a tight range and ended with a negative bias due to sustained capital outflows amid subdued global cues. In contrast, broader markets -- small-cap and mid-cap indices -- ran up.
Rangebound Sensex slips for 2nd day; oil, metal, energy play spoilsport
Mumbai: The domestic markets were at a loss for direction for the second day as the BSE Sensex on Wednesday moved in a tight range and ended with a negative bias due to sustained capital outflows amid subdued global cues. In contrast, broader markets -- small-cap and mid-cap indices -- ran up.
The benchmark S&P Sensex closing about 14 points lower in range bound trade and closed at 31,283.64 points. NSE Nifty fell 19.90 points to end the session at 9,633.60 points. Weak oil prices hurt stocks amid sustained capital outflows.
“Lack of fresh triggers refrained market to continue its positive momentum while today’s RBI minutes will be under scrutiny to check any deviation from current neutral stance due to softening inflation. Global markets remain volatile led by slid in oil prices due to signs of supply glut,” Vinod Nair, Head of Research, Geojit Financial Services Ltd said.
Internationally, oil prices fell below USD 43 a barrel for the first time since November last year on rising output from Nigeria and Libya, two OPEC members exempt from cutting supply. Airlines stocks, however, were upbeat on expectations of lower jet fuel prices with Spicejet and Jet Airways rising by 4.03 per cent and 2.99 per cent,
while InterGlobe Aviation climbed 1.51 per cent. Investors engaged in cutting down their bets apprehending early glitches in GST rollout amid continued capital outflows by foreign funds and a weak trend in Asian markets.
Japan’s Nikkei, Hang Seng, South Korea and Singapore indices fell, while Shanghai Composite Index rose 0.52 per cent. European indices were also under pressure.
