Mumbai Nov 30 (IANS) Key Indian equity indices plunged on Thursday to close with substantial losses as data showing a widened fiscal deficit for the first seven months of 2017-18 along with subdued Asian markets and volatility infused by November futures and options (F&O) expiry subdued investors sentiments.
Market observers pointed out that investors traded with caution on ahead of the second quarter gross domestic product (GDP) data announcement later in the day. Heavy selling pressure in banking auto and metal stocks added to the downward slide.
On a closing basis the wider Nifty50 of the National Stock Exchange (NSE) fell by 134.75 points or 1.30 per cent to 10 226.55 points.
The barometer 30-scrip Sensitive Index (Sensex) of the BSE which opened at 33 542.50 points closed at 33 149.35 points -- down 453.41 points or 1.35 per cent -- from Wednesday s close.
The BSE market breadth was bearish -- 1 479 declines and 1 207 advances.
"Markets ended sharply lower on Thursday as the Nifty broke down from a consolidation range. Investors turned cautious ahead of release of economic data on GDP. Fiscal deficit number for April-October dented sentiments " Deepak Jasani Head Retail Research HDFC Securities told IANS.
Official data released during market hours showed that India s budgetary fiscal deficit for the first seven months of 2017-18 stood at 96.1 per cent -- Rs 5.25 lakh crore -- of the full year s target of Rs 5.46 lakh crore.
"It was also the expiry day of the November near-month series. Turnover on the NSE F&O segment was high at Rs 15 lakh crore almost matching the September derivatives expiry day volumes on September 28 " Jasani added.
The S&P BSE mid-cap index closed lower by 0.55 per cent whereas the small-cap index was higher at 0.10 per cent.
Vinod Nair Head of Research Geojit Financial Services said: "Market slid and rupee depreciated as widened fiscal deficit and expectation of extension in oil production cut from OPEC (Organisation of the Petroleum Exporting Countries) influenced investors to offload funds from the market."
"Today s F&O expiry led volatility and selling in other Asian market hurt the sentiment banks underperformed and metal lose the sheen. Investors remain in a cautious note and today s Q2 GDP data will be a key trigger to give direction to the market " he added.
On the currency front the rupee weakened by 15 paise to close at 64.46-47 against the US dollar from its previous close at 64.31-32.
Sector-wise the S&P BSE banking index declined by 548.72 points followed by auto index by 250.23 points and metal index by 154.35 points.
On the other hand the S&P BSE realty index was up by 26.43 points consumer durables index by 13.48 points and telecom index by 5.98 points.
Major Sensex gainers on Thursday were: Dr Reddy s Lab up 0.45 per cent at Rs 2 286.35; and Bharti Airtel up 0.23 per cent at Rs 496.85.
Major Sensex losers were: Kotak Bank down 2.63 per cent at Rs 1 000.20; State Bank of India down 2.54 per cent at Rs 320.45; Tata Motors (DVR) down 2.54 per cent at Rs 232.30; Reliance Industries down 2.42 per cent at Rs 922.60; and Axis Bank down 2.39 per cent at Rs 536.
--IANS
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