Markets fall as FIIs pare holdings ahead of holidays

MUMBAI, Dec 25 (Business Standard): On Wednesday, the markets ended on a weak note, as foreign investors hit the 'sell' button ahead of year-end holidays. Foreign institutional investors were net sellers by Rs 28.08 billion.
While the BSE Sensex lost 297.85 points, or one per cent, to close at 27,208.61, the National Stock Exchange Nifty closed at 8,174.10. Eleven of the 12 sectoral indices ended with losses. Indices tracking the information technology and the oil & gas sector fared the worst, falling 1.38 per cent and 1.4 per cent, respectively. The real estate index rose 1.1 per cent.
Sesa Sterlite was up 0.6 per cent due to expectations of favourable moves by the government towards the mining sector. Tata Steel and ICICI Bank traded with marginal gains of 0.06 and 0.03 per cent, respectively.
On Wednesday, a domestic asset manager was said to have faced a dividend obligation. Reportedly, this contributed to the selling pressure during the session. Overall, domestic institutions were net buyers by Rs 5.09 billion. Investors traded in the stocks of 2,942 companies, most ending with losses.
Jayant Manglik, president (retail distribution), Religare Securities Ltd, said the Nifty would consolidate in a broad range of 8,050-8,450. In an emailed statement, he added investors could use declines to add to quality stocks.
Kisan R Choksey, chairman at Kisan Ratilal Choksey Shares & Securities, said recent political triggers aided the sentiment. "The Bharatiya Janata Party's victory in Jharkhand is a positive, in light of the rich mineral resources that can be properly utilised," he said.