Markets hold steady, gains fizzle out on F&O expiry

Mumbai: Market benchmarks Sensex and Nifty on Thursday closed flat after touching new all-time highs intra-day, impacted by selling pressure in the wake of July derivatives expiry and a rush to take profit by investors.

While the Sensex ended at 32,383.30, a new high, up 0.84 point, after hitting 32,672.66 during the day, the Nifty settled at 10,020.55, down 0.10 point, after scaling an all- time peak of 10,114.85.

The early gains for both petered out as earnings by some blue-chip companies turned out to be disappointing.

The US Fed provided some relief as Chairman Janet Yellen held the interest rate steady and said it is sticking to the script of gradual policy tightening. She also said the central bank is on the path to cut down its massive balancesheet in coming days.

Sentiment remained strong following fast-changing developments in Bihar after JD(U) leader Nitish Kumar was today sworn as chief minister with BJP's support, signalling stability, traders said.

"FOMC's decision to keep interest rate unchanged kept the market buoyant in early trade. Political developments in Bihar boosted prospects for continuing government stability and strength in the rupee supported positivity. But pressure of futures and options (F&O) expiry and low rollover numbers pared the gains," said Anand James, Chief Market Strategist, Geojit Financial Services.

Drug firm Dr Reddy's plunged 3.29 per cent after the company reported a 56.61 per cent decline in its consolidated net profit for the quarter ended June.

TCS, Tata Motors, Bharti Airtel, Infosys and ITC fell by up to 2.76 per cent, hurting the previous momentum.

Largest mortgage lender HDFC stood out as a bright spot by climbing 5.83 per cent despite the company reporting a marginal decline in consolidated net profit for the June quarter.

Maruti Suzuki rose 0.19 per cent after the automaker registered 4.4 per cent rise in net profit for April-June.

IT suffered the most by falling 1.76 per cent, followed by technology, healthcare and metal.

Other Asian markets ended higher amid record closing in the US and the Federal Reserve's decision to hold the rate.

Foreign portfolio investors (FPIs) sold shares worth Rs 60.60 crore while domestic Investors net bought Rs 676.61 crore of shares yesterday, showed provisional data.

The broader markets too succumbed to profit-booking at record levels