Negative global cues, profit booking drag equity markets lower

Mumbai, Sep 9 (IANS) Profit booking, coupled with negative global markets and lower crude oil prices, dragged down the Indian equity markets during the mid-afternoon trade session on Friday.

The wider 51-scrip Nifty of the National Stock Exchange (NSE) edged down by 52.70 points or 0.59 per cent to 8,899.80 points.

The barometer 30-scrip sensitive index (Sensex) of the BSE, which opened at 29,062.90 points, traded at 28,865.41 points (at 1.45 p.m.) — down 179.87 points or 0.62 per cent from the previous close at 29,045.28 points.

The Sensex has so far touched a high of 29,062.90 points and a low of 28,755.08 points during the intra-day trade.

The BSE market breadth was tilted in favour of the bears — with 1,470 declines and 1,113 advances.

On Thursday, both the key Indian indices made new closing highs, prompted by value buying at lower levels.

The barometer index had edged up 118.92 points or 0.41 per cent to a new 17-month closing high at 29,045.28 points.

Similarly, the NSE Nifty rose by 34.55 points or 0.39 per cent to touch its new 18-month closing high at 8,952.50 points.

Initially on Friday, the benchmark indices opened in the red due to negative Asian markets.

Besides, caution ahead of the release of key macro-economic data such as the factory output — Index of Industrial Production (IIP) — for July and inflation figures for August weighed heavy on the indices.

In addition, depreciation in the rupee’s value dampened investors’ sentiments.

However, value buying at lower levels aided the equity markets to pare their losses.

“Negative global markets due to ECB’s (European Central Bank) decision not to inject more liquidity and profit booking led the equity markets to trade lower,” Anand James, Chief Market Strategist at Geojit BNP Paribas Financial Services, told IANS.

“A weak rupee and lower global crude oil prices too eroded investors risk taking appetite. However, value buying at lower levels arrested sharp falls in the equity markets.”

According to Dhruv Desai, Director and Chief Operating Officer of Tradebulls: “IT stocks traded firm, while banking and pharma stocks traded with mixed sentiments due to profit booking. Auto and oil and gas stocks faced resistance at higher levels due to profit booking.”

“Aviation stocks traded sideways to bearish on lack of buying support. Power sector stocks witnessed strong buying sentiments.”

–IANS

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