Sensex falls nearly 300 points, Nifty ends December series below 12,150; key reasons

The stock markets turned volatile ahead of the expiry of December futures and options (F&O) contracts, the experts said.

The benchmark equity indices — Sensex and Nifty — ended on a volatile note Thursday ahead of the expiry of December derivatives contracts amid weak trade in global equities. After falling 328.37 points during the day, the 30-share BSE Sensex ended 297.50 points, or 0.72 per cent, lower at 41,163.76. It hit an intra-day low of 41,132.89. Similarly, the broader NSE Nifty closed 88 points, or 0.72 per cent, down at 12,126.55.The stock markets had opened on a positive note. Bharti Airtel was the top loser in the Sensex pack followed by RIL, Sun Pharma, LT, Power Grid, HDFC Bank among others. On the other hand, Tata Steel was the major gainer, followed by Bajaj Finance, ONGC and NTPC among others. The stock markets turned volatile ahead of the expiry of December futures and options (F&O) contracts, the experts said.

The rupee was flat against the US dollar at 71.27. The brent futures, the global oil benchmark, advanced 0.33 per cent to $67.42 per barrel. The market remained shut on Wednesday on account of Christmas. In the previous session, the 30-share gauge ended 181.40 points, or 0.44 per cent, lower at 41,461.26. Similarly, the Nifty closed 48.20 points, or 0.39 per cent, down at 12,214.55.

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“The recent decline is largely on the expected lines and it’s healthy for the markets. Nifty has immediate support at 12,100 and we may see a rebound from that zone in the index. Stocks, on the other hand, are witnessing movement on both sides thus traders should focus more on stock selection,” Ajit Mishra, VP – Research, Religare Broking said.

Meanwhile, on a net basis, foreign institutional investors sold equities worth Rs 114.38 crore, and domestic institutional investors offloaded shares worth Rs 345.22 crore on Tuesday, data available with the stock exchange showed.