Profit booking dents Indian equity markets (Roundup)

Mumbai, April 20 (IANS) Profit booking, coupled with negative global indices and weak crude oil prices, depressed the Indian equity markets on Wednesday.

Consequently, the key indices of the Indian equity markets ended the day’s trade flat.

The wider 50-scrip Nifty of the National Stock Exchange (NSE) closed flat with no change at 7,914.75 points.

Similarly, the barometer 30-scrip sensitive index (Sensex) of the BSE ended flat. It opened at 25,942.34 points, closed at 25,844.18 points — up just 27.82 points or 0.11 percent from the previous close at 25,816.36 points.

The Sensex touched a high of 25,956.34 points and a low of 25,716.81 points during the intra-day trade.

The BSE market breadth was tilted in favour of the bulls — with 1,471 advances and 1,151 declines.

Both the key Indian indices had ended on a higher note during the previous trade session on Monday. The Indian equity markets were closed on Tuesday on account of Mahavir Jayanti.

On Monday, the barometer index had gained 189.61 points or 0.74 percent to end at 25,816.36 points. Similarly, the NSE Nifty had risen by 64.25 points or 0.82 percent, to close at 7,914.70 points.

Initially on Wednesday, the key indices of the Indian equity markets opened on a firm note in-sync with positive Japanese indices and expectations of healthy quarterly results.

However, profit booking after five consecutive days of gains depressed the equity markets.

Besides, a steep in decline in the Chinese stocks and weak crude oil prices dented sentiments.

Further, caution prevailed a day ahead of the European Central Bank’s (ECB) monetary policy meeting.

In addition, investors were seen reluctant to chase prices before the release of quarterly results of some bluechips.

Bluechip firms such as HDFC bank and Reliance are expected to declare quarterly figures on Friday.

“Profit bookings after several sessions of gains dented sentiments. The sudden fall in the Chinese indices and a dip in crude oil prices capped gains,” Anand James, chief market strategist, Geojit BNP Paribas Financial Services, told IANS.

“Volatility prevailed despite positive macros, potential for a rate cut and expectations of a healthy quarterly results.”

Vaibhav Agarwal, vice president and research head at Angel Broking said: “Markets closed on flat note led by negative trade in Asian markets.”

“Earnings would be the key trigger for the markets in the coming days.”

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

metal stocks surged in trade pulling the metal index higher by four percent.

“IT (information technology), auto, pharma and media sectorial indices ended in the red as they witnessed minor profit booking,” Shankar noted.

“PSU (public sector undertaking) banks saw late buying taking the bank index at the high point of the day at close.”

Both foreign institutional investors (FIIs) and domestic institutional investors (DIIs) were net sellers during the day’s trade.

Data with stock exchanges showed that FIIs sold stocks worth Rs.80.10 crore and the DIIs sold scrip worth Rs.300.09 crore.

Sector-wise, healthy buying was witnessed in metal, consumer durables, and banking stocks, whereas scrip of automobile, oil and gas, and healthcare came under heavy selling pressure.

The S&P BSE metal index surged by 291.21 points, followed by the consumer durables index, which rose by 214.86 points; and the banking index gained by 142.12 points.

In contrast, the S&P BSE automobile index declined by 105.76 points, followed by the oil and gas index, which receded by 68.92 points; and the healthcare index fell by 48.23 points.

Major Sensex gainers during Wednesday’s trade were Tata Steel, up 6.52 percent at Rs.356.85; Axis Bank, up 3.13 percent at Rs.458.05; GAIL, up 2.11 percent at Rs.367.05; Wipro, up 2.07 percent at Rs.601.35; and NTPC, up 1.25 percent at Rs.141.20.

Major Sensex losers during the day’s trade were TCS (Tata Consultancy Services), down 2.79 percent at Rs.2,451.90; Reliance Industries, down 2.21 percent at Rs.1,038.30.85; Maruti Suzuki, down 1.31 percent at Rs.3,669.60; Sun Pharmaceuticals, down 1.06 percent at Rs.827.90; and Mahindra and Mahindra (M&M), down 1.02 percent at Rs.1,327.35.



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