Nifty Ends Flat, Gains 19% In Financial Year 2016-17

Analysts expect markets to take a breather in short-term as investors brace for earnings from mid-April
The BSE Sensex fell on Friday as investors booked profits in recent outperformers, but the Indian indices gained for a third straight month fuelled by big foreign inflows into the Indian markets. The Nifty advanced as much as 3.8 per cent in the month of March when it had hit a record high of 9,218.40 on March 17. Gains this month were supported by Prime Minister Narendra Modi’s win in Uttar Pradesh and net foreign inflows of $4.67 billion into equity markets as of March 30.

For the quarter, the Nifty rose 12 per cent, its best performance since the April-June quarter of 2014 when PM Modi was elected to power.

In the financial year 2016-17, the NSE has surged 18.9 per cent, rebounding from an 8.9 per cent fall in the previous financial year.Analysts say they expect markets to take a breather in the short-term as investors brace for corporate results starting mid-April.

“There could be some more profit-booking happening in the market. Next week could see some breather in terms of FII (foreign institutional investor) inflows as well as caution ahead of earnings season and monsoon data,” said Siddhartha Khemka, head of research at Centrum Wealth.

In today’s session banking stocks witnessed profit taking after three days of gains which took the Nifty Bank index to record highs. The Nifty Bank index closed 0.81 per cent lower to settle at 21,444.

Axis Bank, HDFC Bank, ICICI Bank, Yes Bank, Bank of Baroda and IndusInd Bank were among the losers from the banking space.

Reliance Industries was the top Nifty gainer, the stock closed 3.95 per cent higher at Rs. 1,321. Indian Oil Corp Ltd, which was included in the Nifty on Friday along with Indiabulls Housing Finance Ltd, was also the top per centage gainer, rising as much as 3.70 per cent. Hindalco, ACC, NTPC and BPCL were also among the gainers.

Education services provider CL Educate slumped on market debut, falling as much as 21 per cent from its IPO price of Rs. 502.