Markets decline in early trade after four-day rally

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| Photo Credit: Reuters

Equity benchmark indices declined in initial trade on April 28 in a highly volatile trade as investors preferred to stay on the sidelines after a four-day rally in the markets.

The 30-share BSE Sensex declined 73.79 points to 60,575.59. The broader NSE Nifty dipped 17.85 points to 17,897.20.

From the Sensex firms, Bajaj Finserv, Asian Paints, Hindustan Unilever, Axis Bank, IndusInd Bank, Power Grid, Bajaj Finance and Kotak Mahindra Bank were the major laggards.

Wipro, Tech Mahindra, Tata Consultancy Services, Sun Pharma and Reliance Industries were among the gainers. In Asian markets, Seoul traded lower, while Japan, Shanghai and Hong Kong quoted in the green. The U.S. markets had ended with significant gains on April 27.

“Markets may see a volatile opening as SGX Nifty has been witnessing sharp gyration even as key U.S. indices bounced back sharply from the recent slump to end sharply higher in overnight trades. Going by the recent uptrend, there are chances that the Nifty could recapture the psychological 18,000-mark.

“FII buying of local shares has also continued and they bought shares to the tune of ₹1,653 crore in yesterday’s trades, while sluggish crude oil below $80 a barrel bodes well for India’s economy,” Prashanth Tapse, Senior VP (Research), Mehta Equities Limited said in his pre-market opening quote.

He further said with the global macroeconomic scenario still looking extremely bleak and local markets having run sharply in recent sessions, profit-taking could be on the cards going ahead.

The BSE benchmark climbed 348.80 points or 0.58% to settle at 60,649.38 on Thursday. The Nifty advanced 101.45 points or 0.57% to end at 17,915.05.

Meanwhile, global oil benchmark Brent crude climbed 0.41% to $78.69 per barrel. Foreign Institutional Investors (FIIs) were buyers on Thursday as they bought equities worth ₹1,652.95 crore, according to exchange data.