Despite massive volatility, the Indian equity markets on Monday closed on a flat - to - positive note after scaling fresh highs on the back of the government's announcement of the timely arrival of the southwest monsoon rains.
Market observers pointed out that FMCG heavyweights such as Hindustan Unilever and ITC got a boost after the India Meteorological Department (IMD) predicted the timely arrival of the southwest monsoon rains.
Both the key indices, however, closed on a flat note as investors booked profits, along with outflow of foreign funds and heavy selling pressure in healthcare stocks.
The wider 51 - scrip NSE Nifty closed above the 9, 600 points - level.
It rose by 9. 80 points or 0. 10 per cent to close at a new high of 9, 604. 90 points, after touching a fresh intra - day high of 9, 637. 75 points.
The 30 - scrip Sensitive Index (Sensex) of the BSE closed at 31, 109. 28 points - - up 81. 07 points or 0. 26 per cent, after scaling a new intra - day high of 31, 214. 39 points.
The BSE market breadth was bearish - - with 1, 820 declines and 843 advances.
"Markets inched higher to yet another new life high on Monday.
Market sentiment was boosted by hopes of timely arrival of southwest monsoon rains after the latest press release from India Meteorological Department (IMD), " Deepak Jasani, Head - Retail Research, HDFC Securities, told IANS.
"Broad market indices like the BSE mid - cap and small - cap indices fell and underperformed the main indices.
Major Asian markets have ended on a mixed note, whereas European indices like CAC 40 and DAX traded flat. "
The S&P BSE mid - cap index fell by 1. 03 per cent and the small - cap index by 1. 53 per cent.
Anand James, Chief Market Strategist, Geojit Financial Services, said: "Markets were off to rough start, owing to disappointing earnings figures from index heavy weights and with the US markets off today, there were few global cues either. "
"Sell - off averted by the FMCG sector in anticipation of early monsoons, while jewellery stocks soared as the GST (Goods and Services Tax) Council decided to impose lesser than expected tax rates on gold and jewellery.
GST positivity however was limited, as confusion regarding final rates for certain rates (GST sub - rates) held markets back, " he added.
On the currency front, the rupee weakened by 4 - 5 paise to 64. 49 per US dollar from its previous close of 64. 44 - 45.
In investments, provisional data with the exchanges showed that foreign institutional investors (FIIs) sold stocks worth Rs 709. 97 crore, while domestic institutional investors (DIIs) bought scrips worth Rs 290. 53 crore.
According to Dhruv Desai, Director and Chief Operating Officer of Tradebulls, both the indices witnessed volatile trade tracking mixed global cues, profit booking and rupee appreciation against the US dollar.
"Healthy buying momentum was seen in FMCG sector stocks led by Dabur and Hindustan Unilever with more than three percent intra - day gains.
ITC and HDFC registered fresh all - time high levels, " Desai told IANS.
"Sun Pharmaceuticals Industries' shares fell around 11 per cent after the company reported a 13. 6 per cent year - on - year drop in its consolidated net profit to Rs 1, 223. 71 crore in the quarter ended March.
Realty sector stocks traded with bearish sentiments led by DLF and Unitech. "
Sector wise, the S&P BSE FMCG index surged by 154. 76 points, the automobile index was up by 70. 87 points and the consumer durables index by 15. 62 points.
On the other hand, the S&P healthcare index plunged by 374. 31 points, the banking index by 248. 70 points, and the capital goods index was down by 154. 11 points.
Major Sensex gainers on Friday were: HDFC, up 3. 29 per cent at Rs 1, 598. 80; Hindustan Unilever, up 3. 07 per cent at Rs 1, 072. 70; Power Grid, up 2. 76 per cent at Rs 208. 45; Cipla, up 2. 55 per cent at Rs 504. 15; and ITC, up 2. 38 per cent at Rs 7. 35.
Major Sensex losers were: Sun Pharma, down 11. 56 per cent at Rs 502. 85; Adani Ports, down 5. 38 per cent at Rs 328. 30; ICICI Bank, down 2. 16 per cent at Rs 314. 70; State Bank of India, down 1. 40 per cent at Rs 284. 40; and Infosys, down 1. 09 per cent at Rs 985. 30.
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