The GST Council’s last week decision to provide relief to exporters and small and medium businesses came as a positive move.
But market participants chose to play with care as the earnings season for the September quarter kicks off this week, which remains a big unknown, traders said. Leading IT exporter Tata Consultancy Services is set to come out with its earnings numbers on Thursday.
The 30-share Sensex rallied to the day’s high of 31,935.63, but slipped before ending up 32.67 points, or 0.10%, at 31,846.89. Part of the selling was an outcome of a rush to take profit.
The gauge had gained 222 points on Friday.
The NSE 50-share after reclaiming the crucial 10,000-mark slipped back to close up 9.05 points, or 0.09%, at 9,988.75. Intra-day, hit a low of 9,959.45.
“Market gained initial momentum from the FMCG sector against the backdrop of GST rate cut for 27 items, but investors were reluctant to take more risk ahead of the earning season. Upcoming IIP numbers and inflation data will also have a crucial impact on the market, especially with the weak growth forecasts and persisting GST hurdles,” said Anand James, chief market strategist, Geojit Financial Services.
DIIs stuck to their buying behaviour, picking up shares net Rs1,239.74 crore. Share outflow from foreign portfolio investors (FPIs) continued at net Rs1,040.40 crore last Friday, showed provisional data.
Coal India hit a home run, up 1.81% — the biggest jumper on the Sensex list. HUL, Kotak Bank, Dr Reddy’s, Adani Ports and Tata Steel advanced by up to 1.37%.
Stocks of automakers stepped on gas, driven by buying support on hopes of a pick-up in demand during the ongoing festive and wedding season. Of the sectoral indices, BSE realty was the centre of buying activity as the index jumped the most by gaining 2.20%.
Consumer durables, FMCG and IT were in the green too.
The broader market showed a mixed movement, with BSE small-cap rising 0.62% and mid-cap dropping 0.04%.
Meanwhile the rupee yesterday closed little changed against the US dollar ahead of key macroeconomic data due on October 12.
The home currency closed at 65.36 against the dollar, up 0.02% from its Friday’s close of 65.37. The rupee opened at 65.40 a dollar and touched a high and a low of 65.28 and 65.41 respectively.
The 10-year bond yield closed at 6.78%, compared to its previous close of 6.757%. Bond yields and prices move in opposite directions.
So far this year, the rupee has gained 4%, while foreign institutional investors have bought $5.26bn and $20.82bn in equity and debt, respectively.
Asian currencies were trading higher. China offshore spot was up 0.5%, China renminbi 0.46%, Thai baht 0.16%, Malaysian ringgit 0.12%, Singapore dollar 0.12%. However, Philippines peso was down 0.16%.
The dollar index, which measures the US currency’s strength against major currencies, was trading at 93.664, down 0.14% from its previous close.
