Negative global cues subdue equity markets

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Mumbai, Aug 26 (IANS) Indian equity markets on Friday were subdued ahead of US Fed Reserve Chair’s speech, coupled with lower crude oil prices.

Consequently, the key Indian indices traded in the red during the mid-afternoon session as heavy selling pressure was witnessed in capital goods, banking and information technology (IT) stocks.

The wider 51-scrip Nifty of the National Stock Exchange (NSE) edged down 38.25 points, or 0.45 per cent, to 8,553.95 points.

The barometer 30-scrip sensitive index (Sensex) of the BSE, which opened at 27,882.75 points, traded at 27,726.97 points (at 2.46 p.m.) — down 108.94 points, or 0.39 per cent from the previous close at 27,835.91 points.

The Sensex has so far touched a high of 27,935.88 points and a low of 27,696.99 points during the intra-day trade.

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The BSE market breadth was skewed in favour of the bears — with 1,615 declines and 945 advances.

On Thursday, both the key indices had closed in the red, as volatility was induced by futures and options (F&O) expiry, coupled with negative global cues.

The barometer index had plunged 224.03 points, or 0.80 per cent, while the NSE Nifty slipped by 58.10 points, or 0.67 per cent.

Initially on Friday, the benchmark indices opened on a positive note.

However, later in the day, negative cues from the global markets led the indices to cap gains.

The markets traded with apprehension as caution prevailed ahead of US Fed Reserve Chair Janet Yellen’s speech on Friday — a pointer to a possible interest rate hike, which can potentially lead FPIs (Foreign Portfolio Investors) away from emerging markets such as India.

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Moreover, the domestic markets traded with caution due to lack of earnings in economic data, which is required to boost investors’ sentiments and drive the markets.

Besides, lower crude oil prices also added to the downward trajectory.

“Lack of earnings in economic data from the domestic markets has led to caution which has dominated the markets in the past few days,” Manish Hathiramani, Proprietary Trader and Technical Analyst at Deen Dayal Investments, told IANS.

“On the global front, investors and traders are focusing on the upcoming speech by Janet Yellen, which will give some clarity on the direction of monetary policy.”



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