Profit booking drags equity markets lower

Mumbai, May 3 (IANS) Profit booking, along with caution over upcoming quarterly results and negative global cues, dragged the Indian equity markets lower on Tuesday.

Consequently, the key indices of the Indian equity markets traded in the red during the late-afternoon session.

The wider 50-scrip Nifty of the National Stock Exchange (NSE) was trading lower by 62.95 points or 0.81 percent, at 7,742.95 points.

The barometer 30-scrip sensitive index (Sensex) of the BSE, which opened at 25,500.14 points, was trading at 25,219.05 points (at 2.55 p.m.) — down 217.92 points or 0.86 percent from the previous close at 25,436.97 points.

The Sensex so far had touched a high of 25,705.96 points and a low of 25,204.22 points during the intra-day trade.

The BSE market breadth was tilted in favour of the bears — with 1,392 declines and 1,143 advances.

On Monday, while the Sensex ended 169.65 points, or 0.66 percent down, the Nifty fell 43.90 points, or 0.56 percent.

Initially, the key indices opened on Tuesday on a flat note, taking cues from their Asian peers which traded in the negative territory.

Asian markets were subdued after the International Monetary Fund (IMF) warned about the possibility of a slowdown in China and Japan during 2016.

However, the Indian equity markets soon rose on the back of short covering, expectations on bankruptcy code being passed through the parliament and value buying at the lower levels.

However, profit booking, negative Asian, European markets and caution ahead of Q4 (fourth quarter) results dampened sentiments.

“The equity markets traded lower on the back of negative global cues and profit bookings,” Anand James, chief market strategist, Geojit BNP Paribas Financial Services, told IANS.

Vaibhav Agarwal, vice president and research head at Angel Broking said that equity market opened on a positive note, supported by favourable eight core industries data along with healthy volume numbers by auto manufactures for March.

“However, the market surrendered all the gains and even slipped into the negative territory later during the session, reacting to weak opening of the European markets,” Agarwal said.

–IANS

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