For a change, Indian markets closed lower when global markets were trading positive.
The US markets closed positive Tuesday, so Asian markets traded positive, and then even London markets were positive in the early part of the day. Yet Indian markets traded negative for most of today, ending close to the days’ lows. The Sensex ended 0.7% down at 19956.34, below 20K. The Nifty also ended below 6K at 5991.30. Only 1 in 3 traded scrips ended positive.
IT and auto were the only sectors which ended positive on the BSE. The top losers were metals (-1.9%), FMCG (-1.4%) and realty (-0.9%).
Sterlite (SLT) was the top loser on the NSE, down almost 9%. This was in reaction to the government order asking it to close its copper smelter in Tamil Nadu. Tata Motors (TTM) was the top gainer in the Nifty, up 2.3%.
Only 1 in 4 Nify Junior scrip ended positive, led by pharma company Glaxo (GSK) (+3.8%). Nifty Midcap50 had an even bad time, with only 1 in 5 scrips ending positive, led by Asian Paints (+3.7%).
FIIs continue to be net buyers, pumping in Rs 756 crore today. Total FII purchase for September has crossed Rs 21,000 crore (~$4.5bn). This is the highest monthly FII investment recorded in India so far. FII purchase has defied logic in September.
For example, today, when one of India’s largest companies, Sterlite, is asked to close down an important plant by the government, one would have expected a pause in FII purchase. Yet, the purchase has continued uninterrupted.
The US markets have had some negative news coming out. Data released by The Conference Board shows a consumer confidence read of 48.5, the lowest since February. The markets were expecting a read of 53, so this may weigh down on US markets.
Disclosure: No positions