Investors anxious over macro data; Sensex trades flat

Mumbai, July 10 (IANS) A barometer index of Indian equities was trading flat during the late-afternoon trade session on Friday.

The Indian equity markets were impacted by investor anxiety over an upcoming key macro-economic data, ongoing first-quarter results season, efforts to stabilise the Chinese markets and the stalemate in the Greek debt crisis.

The benchmark index of the Indian equity markets, the 30-scrip BSE Sensitive Index (Sensex), was trading flat — marginally down by two points or 0.01 percent during the late-afternoon session.

The wider 50-scrip Nifty of the National Stock Exchange (NSE) was also trading flat. It was up by only 16.50 points or 0.20 percent at 8,345.05 points.

The Sensex of the S&P Bombay Stock Exchange (BSE), which opened at 27,705.36 points, was trading at 27,571.94 points (at 2.45 p.m.) in the late-afternoon session — down 1.72 points or 0.01 percent from the previous day’s close at 27,573.66 points.

The Sensex so far touched a high of 27,729.46 points and a low of 27,530.90 points in the intra-day trade.

Analysts pointed out that the investor confidence was shaken after two sessions of heavy sell-offs. The barometer index had lost 484 points on Wednesday and 114 points on Thursday due to the fears of a Chinese stock markets meltdown and the stalemate in the Greek debt crisis.

“Investors are a bit wary due to two sessions of continuous fall. Hopes of a healthy first quarter (Q1) results, good monsoon progress and the positive US Fed’s FOMC (Federal Open Market Committee) minutes are being belied by the fears of Chinese stock markets lows and the Greece issue,” Anand James, co-head, technical research desk, Geojit BNP Paribas, told IANS.

“The investors are also anxious about the upcoming release of the Index of Industrial Production (IIP) data today (Friday) and Consumer Price Index (CPI) data on Monday,” James said.

According to James, these data points coupled-with good monsoon progress will be the undercurrent of market sentiments for sometime, as they will determine any chances of a future rate-cut by the Reserve Bank of India (RBI).

However, the main trigger for now will be the first quarterly earnings results, Gaurav Jain, director with Hem Securities, told IANS.

“The first quarter results and the upcoming parliament session are the main concerns right now. The Chinese market lows and the efforts to stabilise it and the stalemate in the Greece issue will be short-lived triggers,” Jain said.

During Friday’s intra-day trade, healthy buying was observed in banks, healthcare and metal stocks.

However, the fast moving consumer goods (FMCG), information technology (IT) and automobile scrip came under intense selling pressure.

The S&P BSE bank index augmented by 179.11 points, healthcare index extended gains by 62.89 points and metal index rose by 62.89 points.

The S&P BSE FMCG index fell by 91.95 points, IT index dropped by 64.80 points and automobile index was down by 53.30 points.

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