MUMBAI: Indian shares ended September on a cautious note, as early gains on the last day of the month faded under the weight of foreign selling, high global bond yields and a weak rupee.
The Sensex closed at 72,480.29 on Wednesday, down 48.78 points or 0.07 per cent, while the Nifty 50 fell 95.75 points, or 0.42 per cent, to 22,620.45. The close also marked the end of the July–September quarter, one of the more difficult quarters for Indian equities in recent years.
The market opened lower. The Sensex was down 87.92 points at 72,441.15 in early trade and the Nifty down 51.2 points at 22,665. Breadth was positive despite the weak start, with 1,720 shares rising against 639 falling on NSE.
In the opening hour, TCS led the Sensex gainers with a rise of 1.08 per cent, followed by IndiGo, HCL Technologies, Tech Mahindra and ICICI Bank. The BSE Smallcap Select index rose 0.50 per cent to 9,067.13.
Buying then took hold. By 11 am the Sensex was up about 0.30 per cent, the Nifty Midcap 100 was up 0.21 per cent and the Smallcap 100 0.52 per cent. ICICI Bank, Tata Consultancy Services, Kotak Mahindra Bank, Tech Mahindra and HCL Technologies led the early advance, with TCS up more than 1 per cent.
The gains did not last. Selling returned in the afternoon, leaving the Sensex almost flat and the Nifty down 0.42 per cent at the close. Bank and realty shares were among those that held up better through the session. The initial relief from softer crude prices was offset by elevated global yields, persistent selling by foreign institutions and pressure on the currency.
Power Mech Projects rose 3.75 per cent in morning trade after securing an order worth ₹549.37 crore. Cupid gained nearly 7 per cent after its inclusion in the Nifty Smallcap 250 index. Adani Ports, HDFC Bank, Infosys, Eternal and Bajaj Finance were among the early laggards on the Sensex.
Seven companies set Thursday as the record date for dividends, among them Indraprastha Gas, which is paying ₹1.50 a share, and R Systems International, paying ₹8 a share.
Institutional data underlined the pressure on the market. On September 28, foreign institutional investors sold ₹9,980.22 crore of Indian shares, while domestic institutional investors bought ₹6,952.71 crore. Analysts have described the persistent foreign selling as the main concern, even as the market tries to find support near current levels.
Elsewhere in Asia, markets were mixed. Japan's Nikkei rose 1.92 per cent, while Hong Kong's Hang Seng fell 0.25 per cent and South Korea's Kospi 0.31 per cent. Shanghai gained 0.27 per cent.
The second half of September was particularly hard on investors. The Sensex has fallen from 74,294.96 on September 18 to 72,480.29, a decline of about 2.4 per cent, and the Nifty is down nearly 13 per cent for the year. Crude oil near $100 a barrel, US 10-year Treasury yields above 5 per cent and a rupee past 96 to the dollar have been the main headwinds.
The new month brings several events that could set the market's direction. The Reserve Bank of India's Monetary Policy Committee meets from October 5 to 7. The September-quarter earnings season begins, with IT services companies usually among the first to report. GST collections and auto sales figures for September are due in the first days of the month. And any progress in US–Iran talks would offer the quickest relief from the oil prices that have weighed on markets all quarter.
