Negative global indices dent equity markets


Mumbai, Oct 6 (IANS): Negative global markets, coupled with lower crude oil prices and a weak rupee, dented the equity markets during the mid-afternoon trade session on Thursday.

Heavy selling pressure was witnessed in automobile, banking and IT stocks.

The wider 51-scrip Nifty of the National Stock Exchange (NSE) edged down by 7.20 points, or 0.08 per cent, to 8,736.75 points.

The barometer 30-scrip sensitive index (Sensex) of the BSE, which opened at 28,298.35 points, traded at 28,108.62 points (at 2.00 p.m.) -- down 112.36 points, or 0.40 per cent, from the previous close at 28,220.98 points.

The Sensex has so far touched a high of 28,328.56 points and a low of 28,102.90 points during the intra-day trade.

In contrast, the BSE market breadth was tilted in favour of the bulls -- with 1,441 advances and 1,281 declines.

On Wednesday, both the key Indian indices ended in the red due to negative global cues, coupled with profit booking and disappointing macro-data.

The barometer index fell by 113.57 points, or 0.40 per cent, while the NSE Nifty edged down by 25.20 points, or 0.29 per cent.

Initially on Thursday, the benchmark indices opened on a higher note in sync with their Asian peers.

However, the global markets, especially the European markets, remained subdued over speculation on curtailment of stimulus measures by the European Central Bank (ECB).

Besides, caution prevailed ahead of key US macro-data on jobs to be released on Friday.

In addition, lower crude oil prices, profit booking and consolidation added to the downward trajectory. 

"The short-covering rallies earlier in the week have been halted by consolidation and caution ahead of key global event risks," Anand James, Chief Market Strategist at Geojit BNP Paribas Financial Services, told IANS.

"Lower crude oil prices and a weak rupee, too, dented the equity markets."

Dhruv Desai, Director and Chief Operating Officer of Tradebulls, said the CNX Nifty faced profit booking at higher levels.

"IT, banking and FMCG stocks traded down due to profit booking. Pharma and auto stocks traded with sideways sentiments," Desai said. 

"Oil-gas, textile and media-entertainment stocks held on the initial gains on strong buying support. Aviation and power stocks traded down due to profit booking."

  

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