Profit booking dents Indian equity markets

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 traded flat during the late-afternoon trade session.

The wider 50-scrip Nifty of the National Stock Exchange (NSE) inched down by 4.45 points, or 0.06 percent, at 7,910.25 points.

Similarly, the barometer 30-scrip sensitive index (Sensex) of the BSE was flat. It opened at 25,942.34 points and traded at 25,839.88 points (at 2.45 p.m.) — up just 23.52 points or 0.09 percent from the previous close at 25,816.36 points.

The Sensex has so far 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 1,386 advances and 1,119 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 too dented sentiments,” 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 are trading on flat note led by negative trade in Asian markets. Despite the key indices being flat, both the mid and small cap indices are marginally trading in the positive territory.”

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

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