The stock markets took a breather from a record-breaking spree that lasted four consecutive sessions. On the first day of the holiday-shortened week, the S&P BSE Sensex edged lower by 39 points at 41,642 and the broader NSE Nifty benchmark ended down 9 points from the previous close at 12,262.80 as losses in banking, energy and infra shares outweighed gains in automobile and metal shares. The BSE Mid cap and Small cap indices also ended marginally lower at 14822.60 and 13382.03 respectively.
Nestle India, which became a part of the BSE index this day, lost 2.2 per cent at Rs 14,507 to emerge as the top loser on the BSE. Reliance Industries, Tech Mahindra, ITC and ICICI Bank, losing between 1.7 per cent and 2.20 per cent, were the other significant losers on the BSE.
On the other hand, the top gainers on the benchmark index were Maruti Suzuki, Hero MotoCorp, HDFC, Kotak Bank and Bajaj Auto, up between 0.5 per cent and 1.4 per cent.
Last Friday, Fitch Ratings cut its growth forecast for India to 4.6 per cent for the current financial year from the previous estimation of 5.6 per cent after factoring in significant deceleration in past few quarters due to credit squeeze and deterioration in business and consumer confidence.
Analysts expect some volatility in the markets in the near term. "On (the) domestic front, market (is) likely to stay rangebound while FIIs (foreign institutional investors) flows, trade deal and domestic reforms (are) likely to set the momentum going ahead," Motilal Oswal Financial Services analysts wrote in a report.
Foreign institutional investors were net purchasers to the tune of Rs 338.86 crore in the Indian capital markets on Friday, data from the NSE showed. Domestic institutional investors, however, pulled out a net Rs 285.41 crore.
Investors will track the RBI's special Rs 10,000-crore open market operation (OMO) on Monday. Such steps are taken by the central bank when the proceeds from sale of short-term securities are used to buy long-term government securities or bonds, in a bid to bring down interest rates on long-term securities.
The S&P BSE Sensex index had ended 7.62 points higher at 41,681.54 on Friday and the broader NSE Nifty benchmark settled up 12.10 points at 12,271.80 to register record closing highs.
The BSE market breadth was negative, with 1,398 declining stocks as against 1,120 advances.