Caution over upcoming GDP data subdues equity markets

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Mumbai, Feb 8 (IANS) Caution over the upcoming domestic economic growth data, along with negative European markets and a consolidation trend subdued Indian equities markets on Monday.

This led to a barometer index of the Indian equity markets to provisionally end the day’s trade in the red — down 330 points.

Initially, both the bellwether indices of the Indian equity markets opened on a tentative footing, following the US markets’ decline last Friday, after the release of non-farm payrolls data.

Further, investors were seen cautious over the upcoming GDP (gross domestic product) data for the fourth quarter (Q4). The macro-economic data is expected to be released after market hours on Monday.

Besides, negative European markets further depressed investors’ sentiments.

Consequently, the barometer 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE) receded by 330 points or 1.34 percent.

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Similarly, the wider 50-scrip Nifty of the National Stock Exchange (NSE) ended the day’s trade in the red. It was lower by 102 points, or 1.36 percent, at 7,387.25 points.

The S&P BSE Sensex, which opened at 24,637.41 points, provisionally closed at 24,287.42 points (at 3.30 p.m.) — down 329.55 points or 1.34 percent from the previous day’s close at 24,616.97 points.

It touched a high of 24,698.95 points and a low of 24,196.84 points during the intra-day trade.

The S&P BSE market breadth favoured the bears — with 1,480 declines and 1,183 advances.

“Indian markets opened on a tentative footing on the back of US markets’ decline on last Friday. GDP data scheduled for release after market hours, kept gains limited,” Anand James, co-head, technical research desk with Geojit BNP Paribas Financial Services, told IANS.

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Vaibhav Agarwal, vice president and research head at Angel Broking, elaborated that shares oscillated between positive and negative territory, led by lack of directional cues from global markets.

Nitasha Shankar, vice president for research with YES Securities, cited that Indian benchmark indices indicated a consolidation trend.

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