Global cues dent markets, Sensex closes 109 points down

Mumbai, Jan 11 (IANS) Negative global trends, coupled with the upcoming third-quarter results and macro-economic data, depressed Indian equity markets on Monday.

This resulted in the barometer 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE) to provisionally close the day’s choppy trade session down 109 points.

Initially, both the bellwether indices opened on a negative note in sync with their Asian peers and last week’s massive falls.

Other Asian markets were deep in the red after Chinese stocks receded by five percent.

However, the bellwether indices pared their losses as investors were attracted by a sizeable number of stocks that were trading at their yearly lows.

Apart from value buying, short covering amidst thin volumes led the morning relief rally before markets resumed correction.

In addition, investors were hopeful for a better third quarter (Q3) results by India Inc on the back of an economic recovery and low commodity prices.

The Q3 earnings results will start coming out from Tuesday.

However, the gains were soon capped by the long-liquidation positions and Friday’s US-based data which showed a strengthening jobs market. The data hinted at a potential future rate hike.

Another rate hike by the US Fed will lead more FPIs (foreign portfolio investors) away from emerging markets such as India, denting the equity and currency markets.

Besides, caution prevailed over the upcoming domestic macro-data on industrial output, and retail inflation. Both the data points are slated to be released on Tuesday.

The choppy trade session again led to value buying, but gains were soon ceded due to prevailing negative bias.

The volatility finally led barometer S&P BSE Sensex to close 109 points, or 0.44 percent, down.

Similarly, the wider NSE Nifty ended the day’s trade. It was lower by 38 points, or 0.49 percent, at 7,563.85 points.

The Sensex of the S&P BSE, which opened at 24,787.11 points, provisionally closed at 24,825.04 points (at 3.30 p.m.) — down 109.29 points, or 0.44 percent from the previous day’s close at 24,934.33 points.

The Sensex touched a high of 24,961.88 points and a low of 24,598.90 points in intra-day trade.

The S&P BSE market breadth favoured the bears — with 1,556 declines and 1,241 advances.

The Sensex had closed the previous session on January 8, with a staggering fall of 1,226.57 points or 4.68 percent, while the Nifty was lower by 361.85 points, or 4.54 percent.

The rout drowned the scrips of 123 companies to their 52-week lows since the start of 2016.

Related Posts

Leave a Reply