Mumbai May 22 (IANS) A rally in FMCG stocks following the government s decision to exempt food items from the purview of Goods and Services Tax (GST) lifted the Indian equity markets on Monday.
The S&P FMCG index witnessed a surge of 297.25 points or 3.09 per cent during intra-day trade led by ITC scrip with a surge of 6.21 per cent in its price.
However the key indices pared some gains as investors were cautious in view of global political turmoil as well as ahead of derivatives expiry.
The wider 51-scrip Nifty of the National Stock Exchange (NSE) rose by 10.35 points or 0.11 per cent to 9 438.25 points.
The 30-scrip Sensitive Index (Sensex) of the BSE which opened at 30 638.88 points closed at 30 570.97 points -- up 106.05 points or 0.35 per cent from its previous close at 30 464.92 points.
The Sensex touched a high of 30 712.15 points and a low of 30 516.87 points.
The BSE market breadth was bearish -- with 1 844 declines and 877 advances.
Markets ended flat on Monday after a positive opening. Gains in index pivotal ITC supported key benchmarks at lower levels while selling in bank shares offset gains Deepak Jasani Head (Retail Research) HDFC Securities told IANS.
Broader market succumbed to selling pressure. Broad market indices like the BSE mid-cap and small-cap indices fell more thereby underperforming the Sensex.
The S&P BSE mid-cap index slipped by 1.21 per cent and the small-cap index by 1.14 per cent.
Anand James Chief Market Strategist Geojit Financial Services said: FMCG held one end up thanks to GST positivity but with announced rates largely on expected lines and with F&O (futures and options) expiry approaching buyers were looking for deeper bargains allowing markets to slip.
Global markets are likely to be cautious in the first half of the week with FBI (Federal Bureau of Investigation) testimony and FOMC (Federal Open Market Committee) minutes scheduled ahead.
On the currency front the rupee strengthened by 9-10 paise to 64.55 per US dollar from its previous close of 64.64-65.
In investments provisional data with the exchanges showed that foreign institutional investors (FIIs) sold stocks worth Rs 321.27 crore while domestic institutional investors (DIIs) purchased scrips worth Rs 1 262.64 crore.
Aviation sector stocks traded with bearish sentiments tracking higher crude oil prices. Shares of Jet Airways fell by more than eight per cent on selling pressure Dhruv Desai Director and Chief Operating Officer of Tradebulls told IANS.
Banking stocks traded with mixed sentiments due to profit booking while cement and power sector stocks pressurised the firm sentiment of the equity markets.
Sectorwise following the FMCG index the consumer durables index rose by 93.75 points and the capital goods index by 87.54 points.
On the other hand the S&P healthcare index dipped by 243.91 points the oil and gas index by 179.46 points and the automobile index by 177.64 points.
Major Sensex gainers on Monday were: ITC up 6.21 per cent at Rs 303.65; Larsen and Toubro (L&T) up 1.61 per cent at Rs 1 751.80; Adani Ports up 1.36 per cent at Rs 353.95; Tata Motors up 1.23 per cent at Rs 448.40; and Hindustan Unilever up 1.07 per cent at Rs 1 018.35.
Major Sensex losers were: State Bank of India (SBI) down 4.46 per cent at Rs 294.40; Lupin down 3.95 per cent at Rs 1 262.90; Gail down 2.48 per cent at Rs 391.15; Bajaj Auto down 1.98 per cent at Rs 2 912.50; and Mahindra and Mahindra (M&M) down 1.95 per cent at Rs 1 307.05.
--IANS
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Surge in FMCG stocks lifts Indian equity markets (Roundup)
