Bearish global indices, weak rupee dent markets (Third Lead)

Mumbai, Jan 21 (IANS) Bearish global indices, coupled with a weak rupee and long-liquidation positions, pushed down the Indian equity markets on Thursday and led to a barometer index provisionally closing the day’s trade 100 points in the red.

The selling pressure led both the bellwether indices of the Indian equity markets to provisionally close at levels which were last seen during May 2014.

Initially, both the bellwether indices opened on a positive note due to Wednesday’s late trading-hour short-covering rally and slightly higher crude oil prices.

However, the bellwether indices soon ceded their gains in sync with their bearish Asian peers.

Furthermore, investors were seen to be cautious regarding the slide in the rupee value, which weakened to Rs.68 to a US dollar during the intra-day trade.

The weakness in the rupee value indicated the massive foreign funds outflow from the Indian equity and debt markets.

On Wednesday, the foreign institutional investors (FIIs) were net sellers.

According to data with stock exchanges, FIIs divested Rs.1,324.69 crore on Wednesday.

Besides, caution prevailed over the upcoming US macro-data points of jobless claims and crude oil inventory figures.

Nevertheless, markets were able to pare some of their losses on the back of value-buying which took place in the later stages of the session. The positive sentiments were supported after European markets opened in the green.

But the positive momentum was not strong enough to loosen the bear grip on the markets.

The barometer 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE) receded by 100 points or 0.41 percent.

The wider 50-scrip Nifty of the National Stock Exchange (NSE), meanwhile, ended the day’s trade flat. It was down by 29.10 points or 0.40 percent at 7,280.20 points.

The S&P BSE Sensex, which opened at 24,194.75 points, provisionally closed at 23,962.21 points (3.30 p.m.) — down 99.83 points or 0.41 percent from the previous day’s close at 24,062.04 points.

The Sensex touched a high of 24,351.83 points and a low of 23,862 points during the intra-day trade.

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