Profit booking drags equity markets lower (Roundup)

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Mumbai, Aug 10 (IANS) Profit booking, along with negative global cues and caution over upcoming quarterly results, dragged the Indian equity markets lower on Wednesday.

Consequently, both the key indices closed the day’s trade in the red, as heavy selling pressure was witnessed in automobile, banking and healthcare stocks.

The wider 51-scrip Nifty of the National Stock Exchange (NSE) edged lower by 102.95 points or 1.19 per cent to 8,575.30 points.

The barometer 30-scrip sensitive index (Sensex) of the BSE, which opened at 28,133.36 points, closed at 27,774.88 points — down 310.28 points or 1.10 per cent from the previous close at 28,082.16 points.

The Sensex touched a high of 28,143.28 points and a low of 27,736.62 points during the intra-day trade.

The BSE market breadth was skewed in favour of the bears — with 1,895 declines and 835 advances.

On Tuesday, the benchmark indices had closed in the red due to profit booking and disappointment over the Reserve Bank of India’s (RBI) decision to maintain its key lending rates during the monetary policy review.

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The barometer index had slipped by 97.41 points or 0.35 per cent, while the Nifty fell by 33.10 points or 0.38 per cent.

Initially on Wednesday, the benchmark indices opened on a higher note on the back of value buying.

However, profit booking, lower Asian and European markets, along with a dip in global crude oil prices weighed heavy on the key indices.

Besides, caution ahead of the release of key banking sector’s quarterly results and macro-economic data dented the benchmark indices.

Key macro-economic data numbers, such as the factory output data — Index of Industrial Production (IIP) — for June and inflation figures for July are expected to be released on Friday.

Nevertheless, the rupee appreciated in the day’s trade.

The rupee strengthened by 12 paise to 66.73 against a US dollar from its previous close of 66.85 to a greenback.

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“After a flat-to-positive opening on the back of some value buying, the equity markets fell due to profit booking in the absence of any fresh positive cues,” Anand James, Chief Market Strategist at Geojit BNP Paribas Financial Services, told IANS.

According to Dhruv Desai, Director and Chief Operating Officer of Tradebulls pointed out that CNX Nifty witnessed selling pressure and traded down throughout the session.

“Overall selling pressure was seen in most of the sectors. IT, pharma and auto stocks traded down, while banking and FMCG stocks faced resistance due to selling pressure,” Desai said.

“Aviation stocks traded down tracking selling pressure in crude oil prices. Sugar stocks continued on bearish sentiments in today’s session as well.”

In terms of investments, the provisional data with exchanges showed that the foreign institutional investors (FIIs) purchased stocks worth Rs 412.56 crore, whereas the domestic institutional investors (DIIs) divested scrip worth Rs 747.27 crore.

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Sector-wise, heavy selling pressure was witnessed in all the 19 sub-indices. The S&P BSE automobile index plummeted by 418.32 points, followed by the banking index, which plunged by 294.92 points, and the healthcare index declined by 275.03 points.

Major Sensex gainers during Wednesday’s trade were: Adani Ports, up 7.93 per cent at Rs 258.55; Tata Consultancy Services (TCS), up 0.88 per cent at Rs 2,673.90 and Coal India, up 0.31 per cent at Rs 338.

Major Sensex losers were: Lupin, down 3.89 per cent at Rs 1,545.05; Reliance Industries, down 2.63 per cent at Rs 1,002.80; Hero MotoCorp, down 2.56 per cent at Rs 3,320.20; ICICI Bank, down 2.47 per cent at Rs 239.30; and Mahindra and Mahindra (M&M), down 2.21 per cent at Rs 1,447.85.



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