Indian stocks dip ahead of F&O expiry

mumbai — Key Indian equity indices provisionally closed deep in the red on Wednesday as caution ahead of futures and options (F&O) expiry, coupled with a weak rupee and profit booking in banking, capital goods and automobile stocks, hampered investors’ risk-taking appetite.

According to market observers, sentiment was hampered on updates that the Indian Army inflicted “heavy casualties” on militants during a firefight along the border with Myanmar.

“Market close on Wednesday would mark the longest losing streak for the indices after a seven-day fall that ended on December 22, 2016,” Dhruv Desai, director and chief operating officer of Tradebulls, said.

The BSE Sensex shed over 400 points during intra-day trade. At 3.30pm, the 30-scrip Sensitive Index of the BSE provisionally closed at 31,159.81 points — down 439.95 points, or 1.39 per cent.

The wider 51-scrip Nifty of the National Stock Exchange (NSE) closed below the psychologically important 9,800 level. It fell by 1.34 per cent, to close at 9,739.25 points.

On Tuesday, the benchmark indices closed marginally in the red on the back of continuous outflow of foreign funds and selling pressure in telecom, Teck (technology, media and entertainment) and FMCG stocks.

The Nifty closed at 9,871.50 points — down 1.10 points or 0.01 per cent, while the Sensex closed at 31,599.76 points — down 26.87 points, or 0.08 per cent.