Profit sales snap 3-day rally

The market closed lower Friday, as investors booked profits after three days of gains. Global cues were also unsupportive, and led to indices swinging between the positive and negative intra day.

Analysts said the volatility on Friday is a normal phenomenon ahead of the F&O June series expiry next week, and is expected to increase.

Bombay Stock Exchange’s 30-share Sensex closed down 0.27 % or 39 points at 14460. Intra day, it rose to a high of 14560 and low of 14441.

National Stock Exchange’s 50-stock Nifty settled 0.36 % or 15 points lower at 4252, after moving between the high of 4279 and low of 4242.

Sensex traded within a 120 point band and Nifty in 40 points band. Analysts expect the range to widen next week.

Frontline stocks took a beating, while mid-caps and small-caps were firm. BSE Midcap Index was marginally higher at 6375 and Smallcap Index up 0.23% at 7514.

On the Sensex, Ambuja Gujarat Cements, BHEL, Reliance Industries, Tata Steel, Wipro and Grasim Industries were the biggest losers.

The major gainers included Reliance Energy, NTPC, Hindalco, HDFC, Hindustan Unilever and State Bank of India.

Among sectors, oil & gas, capital goods, and metals were laggards. Technology stocks remained subdued due to the rupee’s rise, but banking managed gains.

In sectors, BSE Oil & Gas Index ended down 1% at 7590. Indian Oil Corporation dropped 1.76% to Rs 440. BPCL and HPCL fell 0.95% and 0.24%, respectively.

Shares of metal companies were weak, with the BSE Metal Index down 0.68% at 10,746. Hindustan Zinc lost 3.76%, Jindal Saw Pipes fell 1.29% and Jindal Steel dipped 1%.

In the derivatives segment, Nifty June futures traded at 14 point discount to the spot. Open interest in the contract rose 3.3% to 3.72 crore. Action was more in stock futures than in Nifty June futures.

SBI June contract ended at Rs 1,459.70, up from the previous close of Rs 1,452.45 and premium of Rs 6 to the spot. The futures clocked a turnover of Rs 1, 316.77 crore. The second most actively traded June contract was Reliance Industries with turnover at Rs 859.82 crore. It closed at Rs 1,710.30 compared to the underlying Rs 1,702.15. Open interest was up 3.1% at 82.8 lakh.