Negative global cues subdue equity markets (Roundup)

Mumbai, Aug 17 (IANS) Negative global cues, along with profit booking, subdued the Indian equity markets on Wednesday.

Consequently, both the key equity indices closed in the red as heavy selling pressure was witnessed in information technology (IT) and technology, media and entertainment (TECK) stocks.

The wider 51-scrip Nifty of the National Stock Exchange (NSE) slipped by 18.50 points or 0.21 per cent to 8,624.05 points.

The barometer 30-scrip sensitive index (Sensex) of the BSE, which opened at 28,061.79 points, closed at 28,005.37 points — down 59.24 points or 0.21 per cent from the previous close at 28,064.61 points.

The Sensex touched a high of 28,174.30 points and a low of 27,960.14 points during the intra-day trade.

In contrast, the BSE market breadth was tilted in favour of the bulls — with 1,447 advances and 1,263 declines.

On Tuesday, the benchmark indices closed in the red on the back of negative global cues, profit booking and lower global crude oil prices.

The barometer index had closed lower by 87.79 points or 0.31 per cent, while the NSE Nifty edged down by 29.60 points or 0.34 per cent.

Initially on Wednesday, the key indices opened on a flat note due to negative Asian markets.

Besides, profit booking, lower global crude oil prices and caution over the increased chances of a US rate hike dampened sentiments.

Further, the upcoming crude oil inventory data and the US Fed’s FOMC (Federal Open Market Committee) minutes weighed heavy on investors’ sentiments.

The US Fed’s FOMC minutes assume significance as they can yield cues on when the next rate-hike cycle might start.

Earlier, the US FOMC had decided to maintain its key lending rates due to a weak domestic jobs market and bleak global economic outlook.

A hike in the US interest rates can potentially lead FPIs (Foreign Portfolio Investors) away from emerging markets such as India.

“Negative global markets, lower crude oil prices and caution over increased chances of a rate hike in the US subdued the Indian equity markets,” Anand James, Chief Market Strategist at Geojit BNP Paribas Financial Services, told IANS.

“Profit booking was also witnessed. However, lower level value buying aided the key indices to pare some of their losses.”

According to Dhruv Desai, Director and Chief Operating Officer of Tradebulls, CNX Nifty traded with volatile movement throughout the session mainly due to profit booking.

“IT sector stocks traded under selling pressure throughout the session. Banking stocks traded with mixed sentiments, while pharma stocks traded with sideways to firm sentiments on buying support,” Desai noted.

“Auto stocks traded firm on continues buying support. Aviation stocks traded firm due to short covering and buying support at lower levels. Sugar stocks continued bearish sentiments on lack of buying interest.”

In terms of investments, the provisional data with exchanges showed that the foreign institutional investors (FIIs) purchased negligible amount of stocks, whereas the domestic institutional investors (DIIs) divested scrip worth Rs 89.37 crore.

Sector-wise, the S&P BSE IT index plunged by 180.59 points, the TECK index declined by 79.85 points, and the fast moving consumer goods (FMCG) index fell by 26.93 points.

On the other hand, the S&P BSE metal index surged by 204.14 points, followed by the automobile index, which gained by 179.67 points, and the healthcare index rose by 82.94 points.

Major Sensex gainers during Wednesday’s trade were: Tata Steel, up 3.20 per cent at Rs 391.35; Coal India, up 2.90 per cent at Rs 347.80; Bajaj Auto, up 1.99 per cent at Rs 2,932.90; Hero MotoCorp, up 1.98 per cent at Rs 3,360; and Axis Bank, up 1.14 per cent at Rs 589.90.

Major Sensex losers were: Tata Consultancy Services (TCS), down 2.51 per cent at Rs 2,623.90; Adani Ports, down 2.34 per cent at Rs 266.65; Power Grid, down 1.69 per cent at Rs 174.55; Infosys, down 1.67 per cent at Rs 1,033.40; and Asian Paints, down 1.41 per cent at Rs 1,113.40.



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