Negative global cues depress equity markets (Roundup)

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Mumbai, April 29 (IANS) Negative global cues, coupled with disappointing quarterly results and profit booking, depressed the Indian equity markets on Friday.

This led to key indices of the Indian equity markets to close the day’s volatile trade session on a flat note — marginally in the green.

The wider 50-scrip Nifty of the National Stock Exchange (NSE) inched up barely three points or 0.03 percent, at 7,849.80 points.

The barometer 30-scrip sensitive index (Sensex) of the BSE, which opened at 25,612.91 points, closed at 25,606.62 points — up less than four points or 0.01 percent from the previous close at 25,603.10 points.

The Sensex touched a high of 25,755.43 points and a low of 25,424.03 points during the intra-day trade.

The BSE market breadth was tilted in favour of the bears — with 1,377 declines and 1,115 advances.

On Thursday, both the key indices had ended deep in the red. The barometer index had plunged by 461.02 points or 1.77 percent, while the NSE Nifty had declined by 132.65 points or 1.66 percent.

Initially on Friday, the key indices opened on a flat-to-positive note in sync with their Asian peers.

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Asian markets remained subdued even a day after the Bank of Japan (BoJ) decided to maintain its monetary policy. Investors expected a further easing by the BoJ.

The Indian equity markets soon rose on the back of higher crude oil prices, firm rupee, and expectations of more healthy fourth quarter (Q4) results.

However, profit booking, negative Asian, European markets and less-than-expected Q4 results dampened sentiments.

Sell-off by foreign FIIs (foreign institutional investors) also subdued investors’ sentiments.

The equity markets recovered in the last hour of the trade session, as value buying at lower levels supported prices.

“Negative Asian and European indices, coupled with disappointing quarterly results dented the equity markets,” Anand James, chief market strategist, Geojit BNP Paribas Financial Services, told IANS.

“However, value buying at the lower end, expectations of healthy monsoon rains and firm rupee supported prices.”

Vaibhav Agarwal, vice president and research head at Angel Broking said that the equity markets closed on a flat note led by global cues.

“Key benchmark indices settled with tiny gains after what was a volatile trading session,” Agarwal said.

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“In overseas stock markets, Asian and European stocks edged lower in the wake of the Japanese central bank’s decision against expanding monetary stimulus.”

According to Agarwal, markets are expected to react to global cues such as PMI (purchasing managers index) manufacturing data of UK and Germany along with GDP (gross domestic product) of Eurozone.

“Investors will closely track the next batch of Q4 results of India Inc. companies like Eicher, Hero MotoCorp and Kotak Bank,” Agarwal added.

Nitasha Shankar, senior vice president for research with YES Securities, cited that volumes picked up in the correction along with a rise in VIX (volatility index) portending to volatile and choppy trade sessions.

“Broader markets however, managed to buck the trend to end in the green marginally,” Shankar noted.

“Bank index staged a sharp pullback in last hour of trade led by short covering in the private banks.”

The foreign institutional investors (FIIs) turned into net sellers during the day’s trade, whereas domestic institutional investors (DIIs) were buyers.

The data with stock exchanges showed that FIIs divested Rs.205.30 crore in stocks, while the DIIs bought Rs.28.13 crore worth of scrip.

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Sector-wise, healthy buying was witnessed in healthcare, banking and metal stocks.

However, consumer durables, IT (information technology) and automobile scrip came under selling pressure.

The S&P BSE healthcare index gained 117.70 points, followed by the banking index, which rose by 63.34 points and metal index edged higher by 40.70 points.

The S&P BSE consumer durables index receded by 155.27 points, followed by the IT index which declined by 50.95 points and the automobile index edged lower by 38.65 points.

Major Sensex gainers during Friday’s trade were Lupin, up 1.94 percent at Rs.1,607.75; Cipla, up 1.89 percent at Rs.537; HDFC Bank, up 1.69 percent at Rs.1,133.45; Maruti Suzuki, up 1.24 percent at Rs.3,794.95; and Adani Ports, up 1.21 percent at Rs.238.25.

Major Sensex losers during the day’s trade were Bharti Airtel, down 2.28 percent at Rs.363.80; State Bank of India (SBI), down 1.67 percent at Rs.188.95; Reliance Industries, down 1.48 percent at Rs.982.55; ICICI Bank, down 1.48 percent at Rs.236.60; and Hindustan Unilever, down 1.14 percent at Rs.866.65.



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