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 mid-afternoon trade session on Tuesday.
This led to a barometer index of the Indian equity markets to decline by 180 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.
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 180 points, or 0.73 percent.
Similarly, the wider 50-scrip Nifty of the National Stock Exchange (NSE) was trading deep in the red. It declined by 66 points, or 0.87 percent, at 7,498.05 points.
The Sensex of the S&P BSE, which opened at 24,862.93 points, was trading at 24,644.72 points (at 1.45 p.m.) – down 180.32 points or 0.73 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 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.
Nitasha Shankar, vice president for research with YES Securities, elaborated that broader markets have turned negative in line with the headline indices.
“Market breadth has turned in favour of the bears with 1,100 advances and 1,390 declines. 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 (information technology).”