The domestic stock markets closed in the red on Thursday because investors decided to take their profits before the Union Budget which ended three days of positive market performance. Market sentiment suffered from three factors which included weak global market indicators and ongoing foreign institutional investor selling and a steep decline in the rupee value.
The IT and metal stock sectors experienced the highest selling activity which resulted in lower benchmark index values throughout the trading day. The US dollar exchange rate increase to higher levels caused further rupee depreciation which created additional market troubles for equity investors.
The BSE Sensex opened its trading session at 81,947.31 which represented a decrease from its previous closing value of 82,566.37 and the index experienced selling pressure throughout most of the trading session. The index finished at 82,269.78 after dropping 296.59 points. The NSE Nifty closed at 25,320.65 after losing 98.25 points.
The rupee lost value to reach 92.02 against the US dollar. The Sensex index showed Tata Steel ICICI Bank Power Grid Corporation and HCL Technologies as the companies that suffered the most financial losses. The index received some positive support from Mahindra & Mahindra SBI ITC BEL and Hindustan Unilever which all showed gains.
Brent crude oil prices stayed around $68 per barrel in international markets while gold prices remained close to $5,060 per ounce in the commodities market.
Market participants are now cautiously awaiting key announcements in the upcoming Union Budget which are expected to set the direction for equities in the near term.
