Global cues weigh heavy on markets, Sensex trades flat

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Mumbai, Jan 5 (IANS) Negative global cues, coupled with disappointing macro-data, subdued Indian equity markets during the mid-afternoon trade session on Tuesday.

This led to a barometer index of the Indian equity markets trading flat, a day after it plunged to a new four-month low.

Initially, both the bellwether indices opened on a firm note in sync with their Asian peers.

However, they soon receded on the back of negative international cues from the US, rising geo-political tensions in the Middle East and disappointing macro-data.

Besides, investors were seen cautious regarding the upcoming macro-data on industrial output, retail inflation and the third-quarter earning results which starts from January 14.

Nevertheless, some value buying and mildly positive Asian markets soothed investors’ nerves.

The barometer 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE) inched down by 12 points, or 0.05 percent during the mid-afternoon trade session.

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Similarly, the wider 50-scrip Nifty of the National Stock Exchange (NSE) was trading flat — up 0.45 points, or 0.01 percent, at 7,791.75 points.

The Sensex of the S&P BSE, which opened at 25,744.70 points, was trading at 25,611.44 points (at 1.55 p.m.) — down 12 points, or 0.05 percent from the previous day’s close at 25,623.35 points.

The Sensex has so far touched a high of 25,766.76 points and a low of 25,513.75 points in intra-day trade.

The Sensex had closed the previous session on January 4, down 538 points, or 2.05 percent, while the Nifty was lower by 172 points, or 2.16 percent.

Nonetheless, the S&P BSE market breadth favoured the bulls — with 1,970 advances and 798 declines.

“Yesterday’s massive correction continued to impact sentiments. Negative close of the US markets on Monday also dented investors confidence,” Anand James, co-head, technical research desk with Geojit BNP Paribas Financial Services, told IANS.

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“Geo-political tensions and weak domestic macro-data weighed heavy on markets. However, value buying and positive Asian markets helped stabilise Indian bellwether indices.”

Nitasha Shankar, vice president for research with YES Securities elaborated that Indian markets were trading on a flat note following a sharp fall indicating a pause before the next trend emerges.

“Broader markets, however, are trading in the green outperforming the headline indices. Metal, media and auto stocks are significantly outperforming, while banking stocks continue to witness selling pressure,” Shankar said.

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