Sensex snaps 2-day winning streak ahead of F&O expiry

The BSE Sensex and NSE Nifty snapped a two-day winning streak on Wednesday on the back of unwinding of long positions ahead of the derivatives expiry, coupled with profit bookings. Sensex closed 119.45 points down at 25960.03, while Nifty settled 32.70 points down at 7,896.25.

Depreciation in Indian rupee too dampened sentiments. The rupee was trading lower by 4 paise to 66.43 against the dollar at the time of equity markets closing at the Interbank Foreign Exchange market on increased month-end demand for the US currency from importers.

In the 50-share index, ZEEL, Tata Steel, IndusInd Bank, Tata Power, Tech Mahindra gained between 0.95 per cent and 2.93 per cent. On the other hand, Punjab National Bank, HCL Technologies, BPCL, Infosys, TCS slid between 1.38 per cent and 2.01 per cent.

Sector-wise, BSE metal index was in the pink of health as it rose 0.28 per cent, followed by power (0.27 per cent), FMCG (0.12 per cent) and consumer durables (0.02 per cent). The BSE IT index fell 1.21 per cent on Wednesday.

Vinod Nair, head, fundamental research, Geojit BNP Paribas Financial Services said, “Investors are cautious ahead of F&O expiry on Thursday and they are not actively participating in this market as the year comes to an end. Besides, the market tested its key support level of 7,900 in the trade on Wednesday due to profit booking.”

The near month December 2015 derivatives contracts will expire on Thursday i.e. December 31, 2015.

Liquor stocks like United Breweries, United Spirits, Tilaknagar Industries continue to end lower for second day in a row after the Supreme Court of India upheld the Kerala liquor ban policy.

However, companies related to insurance business viz. Aditya Birla Nuvo and Bajaj Finserv edged higher, as the Insurance Regulatory and Development Authority of India (Irdai) has said that the existing micro insurance products will continue to be on offer till March 31, 2016. Earlier, it was mandated that all existing micro insurance products that are not in compliance to the Irdai regulations 2015 shall be withdrawn with effect from January 1, 2016.

Government on Wednesday approved an Amended Technology Upgradation Fund Scheme (A-TUFS) in place of the existing Revised Restructured TUFS for technology upgradation of the textiles industry, a move expected to boost job creation and exports in the sector. The amended scheme would give a boost to Make in India

initiatives in the sector and is expected to attract investment to the tune of Rs 1 lakh crore and create over 30 lakh jobs. Shares of textile companies such as Lakshmi Machine Works and Siyaram Silk Mills gained 7.86 per cent and 2.09 per cent.

Asian equity markets ended mixed on Wednesday. Trading volumes were light across the region, despite an overnight rally in Brent crude oil prices driving up US stocks. Japanese stocks ended up on last trading day of 2015, as the dollar steadied at mid-120 yen range on optimism over the world’s largest economy. Japanese markets are closed for a public holiday on 31 December. China stocks reversed initial losses to end slightly higher, helped by a late rally in banking shares. However, activity was thin as traders awaited manufacturing activity surveys for December, which are expected to show the economy remains sluggish. Hong Kong stocks fell in thin trading, undermined by selling in energy and financial shares, amid lingering worries about China’s economy.