Negative global cues drag equity markets lower

Mumbai, April 22 (IANS) Negative global cues, coupled with profit booking and unwinding of long positions ahead of key quarterly results, dented the Indian equity markets on Friday.

Consequently, the key indices of the Indian equity markets traded in the red during the late afternoon trade session.

The wider 50-scrip Nifty of the National Stock Exchange (NSE) was lower by 24 points or 0.30 percent, at 7,888.10 points.

The barometer 30-scrip sensitive index (Sensex) of the BSE, which opened at 25,892.49 points, traded at 25,806.16 points (at 2.45 p.m.) – down 74.22 points or 0.29 percent, from the previous close at 25,880.38 points.

The Sensex has so far touched a high of 25,922.02 points and a low of 25,771.88 points during the intra-day trade.

The BSE market breadth was tilted in favour of the bears — with 1,313 declines and 1,149 advances.

Both the key Indian indices had ended on a flat note during the previous trade session on Thursday. The barometer index had gained a mere 36.20 points or 0.14 percent, however, the NSE Nifty had slipped 2.70 points or 0.03 percent.

Initially on Friday, the key indices opened on a flat note, as they were dragged lower by negative Asian markets.

In addition, negative close of the US markets on Thursday impacted Asian and domestic indices. The US markets closed lower after some blue chip firms came out with disappointing quarterly results.

Besides, profit booking and unwinding of long positions capped gains.

Investors were also seen reluctant to chase prices ahead of the release of quarterly figures from some blue chip companies.

However, an outright selloff was averted as value buying at lower levels and positive domestic macros provided some support to prices.

“Profit booking continued for today as well. Investors looked to be more keen on exiting. Unwinding of long positions and negative global cues dampened sentiments,” Anand James, chief market strategist, Geojit BNP Paribas Financial Services, told IANS.

“Disappointing US quarterly results have also guided the markets.”

According to Vaibhav Agarwal, vice president and research head at Angel Broking, markets opened on a flat note led by negative trade in the Asian indices.

“HDFC bank and Reliance are set to declare their results today, thus this could be a key trigger for the market,” Agarwal said.

Nitasha Shankar, senior vice president for research with YES Securities, cited that

headline index Nifty has entered into a trading range that indicated a pause in the uptrend.

“Bank index continued to outperform led by buying in the PSU (public sector undertaking) banking stocks,” Shankar noted.



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