For a rally, Nifty has to close above 7,050 first
We had mentioned in Wednesday’s closing report that Nifty has to close above 7,110 for the decline to end. The index today closed in the negative for the third consecutive session. The market which was trading sideways up to the beginning of the noon session did not react positively for the rail budget announced today. The index was pulled lower in the noon session to hit a six day(including today) low. The markets were more volatile because the February series of futures and options expired today.
India VIX fell 0.91% to close at 22.7450. NSE recorded a volume of 1,067.31 million shares.
Investors' sentiments were subdued after the railway minister failed to announce big ticket capital expenditure projects in his budget speech, so as to meet the government's fiscal deficit targets. Further, investors took notice of the fact that railway revenue targets might not be met due to a slowdown in economic activity and that the government looked at monetising the internal resources for fund mobilization.
In addition, a sharp fall of over 6% in Shanghai Composite and softening of crude oil prices which declined by 1% to $31, unnverved the investors.
Besides, a weak rupee dented sentiments. It closed weaker by 15 paise to touch its 30-month closing low. The rupee closed at 68.71 against the US dollar, at level which was last seen during late August, 2013. During the intra-day trade rupee value dwindelled to 68.79 to a US dollar from its previous close of 68.56 to a greenback.
The FIIs were net sellers during the day's trade, while the domestic institutional investors (DIIs) bought stocks. The data with stock exchanges showed that FIIs divested Rs 1,465.68 crore, while the DIIs bought stocks worth Rs 806.97 crore.
The top gainers and top losers of the major indices are given in the table below:
The closing values of major Asian indices are given below: