Lack of participation subdues markets, Sensex trades flat

Mumbai, Dec 24 (IANS) Lack of investors’ participation, coupled with the ongoing political turmoil and delay in the passage of a key economic legislation, subdued Indian equity markets during the mid-afternoon trade session on Thursday.

This led a barometer index of the Indian equity markets to trade flat during the mid-afternoon session, a day after it made healthy gains of nearly 260 points.

Latest data with the stock exchanges showed that the volumes in cash markets across key bellwether indices eased to the Rs.16,000 crore in the last couple of trading sessions from a robust Rs.20,000 crore levels seen last week.

In addition, the government’s inability to get the crucial GST (Goods and Services Tax) bill passed during the winter session of parliament continued to eroded investors’ confidence.

Besides, investors were cautious regarding the third quarter earnings season.

The barometer 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE) was trading flat during the mid-afternoon session.

Similarly, the wider 50-scrip Nifty of the National Stock Exchange (NSE) was flat. It marginally declined by 14.35 points or 0.18 percent at 7,851.60 points.

The Sensex of the S&P Bombay Stock Exchange (BSE), which opened at 25,893.84 points, was trading at 25,822.75 points (at 1.55 p.m.) – down 27.55 points or 0.11 percent from the previous day’s close at 25,850.30 points.

The Sensex has so far touched a high of 25,922.47 points and a low of 25,815.18 points during the intra-day trade.

The Sensex had closed the previous session on Wednesday, up 259.65 points or 1.01 percent, while the Nifty ended higher by 79.85 points or 1.03 percent.

“Lack of investors’ participation during the holiday season in the cash markets subdued sentiments. Markets were lackluster due to the low participation of foreign funds which were expected to return after the FOMC (Federal Open Market Committee) meet,” Vinod Nair, head for fundamental research with Geojit BNP Paribas Financial Services, told IANS.

“Government’s inability to pass the GST during the winter session of parliament also dragged the markets lower.”

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