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Last Updated : Apr 27, 2017 04:42 PM IST | Source: Moneycontrol.com

Nifty ends April series below 9350; Sensex snaps 3-day rally on profit booking

During April series, the Nifty rallied 1.8 percent while Midcap index surged 5.2 percent, backed by more than Rs 7,000 crore worth of buying by domestic institutional investors when FIIs were net sellers.

Equity benchmarks snapped three-day winning streak on profit booking Thursday, with the Nifty closing April series below 9,350 level. Weak European cues also dampened sentiment in the second half of session.

The 30-share BSE Sensex was down 103.61 points at 30,029.74 and the 50-share NSE Nifty fell 9.70 points to 9,342.15 amid consolidation, weighed by profit booking in banking & financials, FMCG and select pharma stocks.

Investors also digested recent positive global events (like French elections) and quarterly earnings that so far have been good, analysts say, adding today's volatility was expected due to expiry of April futures & options contracts.

They feel consolidation may continue for couple of days as the Sensex rallied 768 points in previous three consecutive sessions and hit a record closing high, but in May series, the Nifty may add around 200-300 points.

Jayant Manglik, president of retail distribution at Religare Securities said traders should remain focused on buying fundamentally sound counters on dips and avoid contrarian trades. He is now eyeing 9,450 level on Nifty.

"Q4 numbers have not disappointed so far, and have underpinned markets, but market is looking for further signs for extending the ongoing rally, especially with increasing chances of El Nino this monsoon season," Anand James, chief market strategist at Geojit Financial Services said.

mrkt___27042017

According to Pankaj Pandey, Head-Research at ICICI Direct, with enabling fundamental factors such as stabilised commodity base, upbeat consumption and most importantly, a favourable low base, the earnings from hereon could witness a strong double digit growth recovery in FY18 and thus drive the market momentum.

Global markets remained weak as lack of clarity over US president's corporate tax proposals influenced investors to book some profits. At the time of writing this article, France's CAC, Germany's DAX and Britain's FTSE were down 0.3-0.6 percent ahead of ECB meeting later today.

"The outcome of European Central Bank & Bank of Japan policy meet today will be watched for any comments on the outlook for stimulus program," Vinod Nair, Head of Research at Geojit Financial Services said.

During April series, the Nifty rallied 1.8 percent while Midcap index surged 5.2 percent, backed by more than Rs 7,000 crore worth of buying by domestic institutional investors when FIIs were net sellers.

The broader markets outperformed benchmarks, with the BSE Midcap and Smallcap indices closing flat despite weak breadth. About 1559 shares declined against 1318 advancing shares on the exchange.

Index heavyweights ITC (down 1.91 percent), HDFC (1.11 percent) and Reliance Industries (0.6 percent) dragged the Nifty below 9350.

Nifty Bank outperformed benchmarks, ending at record closing high of 22,326.30 with 0.4 percent gains as IDFC Bank (up 6.2 percent), Yes Bank (3.79 percent), Kotak Mahindra Bank (1.58 percent) and HDFC Bank (0.4 percent) were leading contributors.

However, the fall in Axis Bank (down 2.19 percent on profit booking post earnings), ICICI Bank (1.05 percent and SBI (1.55 percent) limited upside.

Lupin lost 2.5 percent after the US health regulator issued Form 483 with three observations to its Goa plant.

IT index also gained 0.5 percent as Infosys and Wipro rebounded 1 percent each but TCS fell 0.4 percent.

Tata Motors share price was up 1 percent. The company has signed a contract for supply of 3,192 units of the Tata Safari Storme 4x4 to the Indian Armed Forces.
First Published on Apr 27, 2017 04:13 pm
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