Global cues weigh heavy, Sensex down 46 points

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

This led a barometer index of the Indian equity markets to trade marginally in the red — down 46 points, 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 start 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) was trading lower by 46 points, or 0.18 percent during the late-afternoon trade session.

The wider 50-scrip Nifty of the National Stock Exchange (NSE) was trading flat — down 4.00 points, or 0.05 percent, at 7,787.35 points.

The Sensex of the S&P BSE, which opened at 25,744.70 points, was trading at 25,577.15 points (at 3.00 p.m.) — down 46.20 points, or 0.18 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 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 2,025 advances and 840 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.

“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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