Global cues dent markets, Sensex down 174 points

Mumbai, Jan 6 (IANS) Geo-political tensions, coupled with caution over upcoming macro-data and quarterly results, depressed Indian equity markets on Wednesday.

This led to a barometer index of the Indian equity markets to provisionally close the day’s trade down 174 points.

Initially, both the bellwether indices opened on a flat-to-negative range in the wake of two days of consecutive falls, disappointing domestic macro-data and global uncertainties.

Nevertheless, both the indices soon pared their losses on the back of short-covering, value-buying and positive Asian markets’ close.

Finance Minister Arun Jaitley’s comments on Tuesday regarding further reforms in the infrastructure sector also buoyed sentiments.

However, the bellwether indices soon receded, as investors were spooked over the rising geo-political tensions in the far east following North Korea’s reported testing of a thermo-nuclear device.

In addition, volatility was stroked by the upcoming US non-farm payroll figures scheduled for release on late Thursday India time, along with minutes of latest FOMC (Federal Open Market Committee) meeting.

Both the events could provide indications on future US rate hikes.

Besides, caution prevailed over the upcoming domestic macro-data on industrial output, retail inflation and the third-quarter earning results which start coming in from January 12.

The barometer 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE) shed 174 points, or 0.68 percent.

Similarly, the wider 50-scrip Nifty of the National Stock Exchange (NSE) ended the day’s trade in the red. It was lower by 44 points, or 0.56 percent, at 7,741 points.

The Sensex of the S&P BSE, which opened at 25,628.23 points, provisionally close at 25,406.33 points (3.30 p.m.) — down 174.01 points, or 0.68 percent from the previous day’s close at 25,580.34 points.

The Sensex touched a high of 25,632.57 points and a low of 25,357.70 points in intra-day trade.

The Sensex closed the previous session on January 5 down 43 points, or 0.17 percent, while the Nifty was lower by 7 points, or 0.09 percent.

The S&P BSE market breadth slightly favoured the bears — with 1,511 declines and 1,407 advances.

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