Mumbai, Oct 20 (IANS) Caution over the ongoing quarterly results and profit bookings subdued Indian equity markets on Tuesday. Investors were seen reluctant to chase higher prices, which led a barometer index to trade flat during the mid-afternoon session.
Initially, both the bellwether indices opened flat in line with their Asian peers.
Furthermore, the comments made by Reserve Bank of India (RBI) Governor Raghuram Rajan on Monday, when he cautioned the International Monetary Fund (IMF) to stop some countries from initiating policies that might negatively impact global economy dented sentiments.
The wider 50-scrip Nifty of the National Stock Exchange (NSE) traded flat during the session under review. It was lower by 9.85 points or 0.12 percent at 8,265.20 points.
The barometer 30-scrip sensitive index (S&P Sensex) of the Bombay Stock Exchange (BSE), which opened at 27,402.90 points, was trading at 27,330.72 points (at 2.15 p.m.) — 34.20 points or 0.12 percent lower from its previous close at 27,364.92 points.
The Sensex has so far touched a high of 27,432.07 points and a low of 27,298.98 points during the intra-day trade.
The barometer index closed the previous trading session on October 19 with gains of 150 points or 0.55 percent.
Analysts pointed out that investors were seen cautious over the upcoming quarterly results.
“Investors are cautious to chase prices higher. The cautiousness prevails due to the results season,” Anand James, co-head, technical research desk with Geojit BNP Paribas Financial Services, told IANS.
The lackluster Asian markets also negatively impacted the Indian indices. In Asian markets, Japan’s Nikkei was up 0.42 percent, while Hong Kong’s Hang Sang slipped by 0.37 percent. However, China’s Shanghai Composite index increased by 1.11 percent.
Nitasha Shankar, vice president, research, with YES Securities, told IANS: “Broader markets outperformed the headline index as high beta stocks continue to witness buying interest.”
“Auto, tech and banking stocks are taking the index higher. While pharma stocks are seeing some profit booking. Metal stocks are weakening further, weighing on the index,” Shankar added.
Sector-wise, S&P BSE metal index receded by 94.31 points, oil and gas index declined by 56.49 points and healthcare index was down 49.19 points.
The S&P BSE consumer durables index surged by 85.34 points, information technology (IT) index augmented by 78.06 points, automobile index gained by 70.39 points.