The domestic equity market saw a tepid opening on Friday, with the benchmark indices trading sideways amid lack of cues from Asian markets, even as investors awaited a host of earnings releases lined up for later in the day.
The trend was seen following poor rollover of futures & options contracts to the May series. Analysts expect the market to consolidate going ahead after the recent bounce. Some analysts even see a mild correction ahead.
At 9.25 am, the NSE barometer was trading 30.60 points, or 0.33 per cent, lower at 9,311. This is the first day of trading in the May series. The BSE Sensex slipped below the 30,000 mark and was trading at 29,958, down 71.56 points or 0.27 per cent.
“Rollover in Nifty is below average, which is not a good sign for the bulls. The long-short ratio in index futures has also dropped from 78 per cent to 62 per cent. As far as options activity goes, the 9,500 and 9,400 levels are seeking attention of the bulls, while a major support is firmly placed at 9,000-9,100 levels,” said Sneha Seth, Equity Derivative Analyst at Angel Broking.
Non-Sensex constituents Indiabulls Realty cracked 5 per cent, while Ujjivan Financial fell 4 per cent.
Maruti Suzuki jumped 1.25 per cent to Rs 6,450. The largest domestic carmaker Maruti Suzuki on Thursday reported a 15.8 per cent rise in net profit at Rs 1,709 crore for the fourth quarter. The company had registered net profit of Rs 1,476.2 crore in the year-ago period.
Shares of Tata Steel, Bajaj Auto and Hero MotoCorp advanced up to 0.8 per cent.
Meanwhile, the International Monetary Fund said the GST would help raise India’s medium-term growth to above eight per cent, adding that the reforms being carried out are expected to pay off in terms of higher growth in the future.
This past year has been proving the best for Dalal Street in three years of Modi Sarkar. Thanks to hopes of GST implementations, among other key factors, the BSE Sensex has jumped 16 per cent in the past 11 months, compared with a 6.37 per cent fall seen in Modi’s second year in office and 12 per cent rise after the BJP’s candidate assumed office on May 25, 2014, data available with corporate database Capitaline suggested.