Mumbai, Jan 12 (IANS) Caution over third-quarter results, coupled with anxiety over the upcoming macro-data points subdued the Indian equity markets during the late-afternoon trade session on Tuesday.
This led to a barometer index of the Indian equity markets to decline by 173 points.
Initially, both the bellwether indices of the Indian equity markets made modest gains as investors were attracted by a sizeable number of stocks that are trading near their yearly lows.
Besides value buying, short covering amidst thin volumes led to the morning relief rally.
However, both the indices soon ceded their gains, as anxiety was stroked by the third quarter (Q3) results which will start coming in from Tuesday.
Amongst the company’s which will release their Q3 results on Tuesday are information technology (IT) major Tata Consultancy Services (TCS), Federal Bank and IndusInd Bank.
In addition, long-liquidation positions and lackluster Asian markets, too, dented investors’ sentiments.
Caution also prevailed over the upcoming domestic macro-data on industrial output, and retail inflation. Both the data points are slated to be released on Tuesday.
The barometer 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE) receded by 173 points, or 0.84 percent.
Similarly, the wider 50-scrip Nifty of the National Stock Exchange (NSE) was trading deep in the red. It declined by 63.25 points, or 0.84 percent, at 7,500.60 points.
The Sensex of the S&P BSE, which opened at 24,862.93 points, was trading at 24,651.69 points (at 2.45 p.m.) – down 173.35 points or 0.70 percent from the previous day’s close at 24,825.04 points.
The Sensex has so far touched a high of 24,882.30 points and a low of 24,597.11 points in intra-day trade.
The S&P BSE market breadth favoured the bears — with 1,799 declines and 896 advances.
The Sensex closed the previous session on January 11 down 109 points or 0.44 percent, while the Nifty ended lower by 38 points or 0.49 percent.
“We have had a flat-to-firm opening based on our markets’ yesterday’s close. The bearish sentiment still continues which is being supported by a weak rupee and low expectations out of the Q3 results,” Anand James, co-head, technical research desk with Geojit BNP Paribas Financial Services, told IANS.
“The macro-data points are not surprise elements but are still stroking some volatility. Healthy results will give a positive bias to the markets, as investors are not expecting much out of this quarter’s results. The movements are expected to be stock specific.”
Nitasha Shankar, vice president for research with YES Securities, elaborated that broader markets have turned negative in line with the headline indices.
“All major sectorial indices are trading in the red barring the pharma index,” Shankar noted.
“PSU (public sector undertaking) banks continue to bleed along with metal, reality and IT.”