Bearish global indices dent markets, Sensex down 266 points

Mumbai, Jan 15 (IANS) Bearish global markets, coupled with disappointing macro-data and caution over the third quarter results subdued Indian equity markets during the late-afternoon trade session on Friday.

This led a barometer index to trade deep in the red — down 266 points.

Initially, both the bellwether indices opened on a firm note, following higher closing of the US markets on Thursday and value buying at lower levels.

However, both indices soon ceded their initial gains due to bearish Asian markets, lack of fresh triggers and caution over Q3 results.

Besides, the bellwether index receded after Thursday’s macro-economic data showed an acceleration in inflation trends.

The rising wholesale price index (WPI), coupled with a higher annual retail inflation have diminished hopes of a rate cut by the country’s apex bank.

Moreover, long-liquidation positions, sliding European markets and upcoming US macro-data dented sentiments.

The barometer 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE) was trading lower by 266 points or 1.07 percent.

Similarly, the wider 50-scrip Nifty of the National Stock Exchange (NSE) plunged during the late-afternoon session. It was down by 79 points or 1.05 percent at 7,457.90 points.

The S&P BSE Sensex, which opened at 24,881.76 points, was trading at 24,507.28 points (at 2.50 p.m.) — down 265.69 points or 1.07 percent from the previous day’s close at 24,772.97 points.

The Sensex has so far touched a high of 24,912.64 points and a low of 24,467.84 points during the intra-day trade.

The S&P BSE market breadth favoured the bears — with 2,131 declines and 475 advances.

“Bearish Asian markets, disappointing macro-data and caution over the upcoming Q3 results depressed investors. The general weakness still persists and with lack of fresh triggers, markets are moving in a tight range,” Anand James, co-head, technical research desk with Geojit BNP Paribas Financial Services, told IANS.

“However, our markets’ had a firm opening due to higher closing of the US markets yesterday and healthy Q3 results from an IT major,” James added.

Vaibhav Agarwal, vice president and research head at Angel Broking, elaborated that value buying at lower levels have halted and that the market breadth remains weak.

“The midcap and small cap indices are down nearly a percent each. We expect markets to react to key results in the coming week,” Agarwal noted.

“Investors will also watch out for US industrial production and inflation data expected later today for further cues on the US economy.”

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