Negative global cues subdue equity markets

Mumbai, May 6 (IANS) Negative global cues, coupled with profit booking and lower crude oil prices, subdued the Indian equity markets on Friday.

This led to key indices of the Indian equity markets trading on a flat-to-negative note during the mid-afternoon session.

The wider 51-scrip Nifty of the National Stock Exchange (NSE) was lower by 17.60 points, or 0.23 percent, at 7,717.90 points.

The barometer 30-scrip sensitive index (Sensex) of the BSE, which opened at 25,223.67 points, traded at 25,194.44 points (2.00 p.m.) — down 67.77 points or 0.27 percent from the previous close at 25,262.21 points.

The Sensex has so far touched a high of 25,250.06 points and a low of 25,057.93 points during the intra-day trade.

The BSE market breadth was tilted in favour of the bears — with 1,304 declines and 1,070 advances.

Both the key Indian indices had ended on a positive note on Wednesday. The barometer index had gained 160.48 points or 0.64 percent, while the NSE Nifty had closed higher by 29 points or 0.38 percent.

The key indices opened on a flat-to-negative note on Friday. Investors took cues from Asian markets which traded in the red.

Asian markets remained subdued, as the benchmark indices in China and Japan plunged on fears of further decline in global commodity prices.

Besides, lower crude oil prices and caution ahead of the US non-farm payrolls data on Friday dented the equity markets.

However, falls were mitigated, as value buying and expectations that key economic legislation will get parliamentary approval supported prices.

“Negative Asian markets, especially the fall in the Chinese indices dented investors’ sentiments. However, value buying at lower levels supported prices,” Anand James, chief market strategist, Geojit BNP Paribas Financial Services, told IANS.

According to Nitasha Shankar, senior vice president for research with YES Securities, Indian markets continued to trade on a bearish note following weakness in the global equity markets.

“Broader markets are however, trading in the positive territory at the moment outperforming the headline indices,” Shankar noted.

“Barring the FMCG and PSU bank index all other sectoral indices are trading in the red led by profit booking.”

–IANS

rv/dg

Related Posts

Leave a Reply