Global cues, profit booking drag equity markets lower

Mumbai, Oct 5 (IANS) Negative global indices, coupled with profit booking and lower than expected macro-data, dragged the Indian equity markets during the mid-afternoon trade session on Wednesday.

Heavy selling pressure was witnessed in banking, IT and oil and gas stocks.

The wider 51-scrip Nifty of the National Stock Exchange (NSE) edged down 22.35 points, or 0.25 per cent, to 8,746.80 points.

The barometer 30-scrip sensitive index (Sensex) of the BSE, which opened at 28,425.74 points, traded at 28,245.68 points (at 2.15 p.m.) — down 88.87 points, or 0.31 per cent, from the previous close at 28,334.55 points.

The Sensex has so far touched a high of 28,477.65 points and a low of 28,209.19 points during the intra-day trade.

In contrast, the BSE market breadth was tilted in favour of the bulls — with 1,683 advances and 1,068 declines.

On Tuesday, both the key Indian indices ended in the green due to short covering and value buying on the back of positive global cues, and reduction in a key lending rate by the Reserve Bank of India (RBI).

The barometer index had gained 91.26 points, or 0.32 per cent, while the NSE Nifty surged by 31.05 points, or 0.36 per cent.

“Investors were seen reluctant to chase prices after several days of rise,” Anand James, Chief Market Strategist at Geojit BNP Paribas Financial Services, told IANS.

“Negative European markets and disappointing Services PMI figure, too, dragged the key indices lower.”

According to Dhruv Desai, Director and Chief Operating Officer of Tradebulls, the CNX Nifty traded lower due to profit booking at higher levels.

“IT and banking stocks traded with mixed sentiments. Pharma and auto stocks traded with firm sentiments on buying support,” Desai said.

“Oil-gas and textile stocks traded firm on buying support. Aviation and FMCG stocks faced profit booking at higher levels.”

–IANS

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