Sensex trades flat; IT stocks zoom

Mumbai, July 21 (IANS) Major first quarter results and the start of the monsoon session of parliament led the Indian equity markets to move in a tight-range, with a barometer index trade flat during the mid-afternoon trade session on Tuesday – but IT and TECK stocks zoomed by 514.07 and 258.42 points.

The benchmark index of the Indian equity markets, the 30-scrip sensitive index (Sensex) of the S&P Bombay Stock Exchange (BSE) was trading flat – down 1.60 points or 0.01 percent during the session.

The wider 50-scrip Nifty of the National Stock Exchange (NSE) was also trading flat. It was however up 3.20 points or 0.04 percent at 8,606.65 points.

The Sensex of the S&P Bombay Stock Exchange (BSE), which opened at 28,381.82 points, was trading at 28,481.52 points (1.05 p.m.), down 1.60 points or 0.01 percent from the previous day’s close at 28,420.12 points.

The Sensex so far touched a high of 28,518.06 points and a low of 28,354.81 points in the intra-day trade.

“The lackluster performance is due to stock specific action on account of the first quarter results. Other triggers for the subdued movements are the anxiety surrounding the monsoon progress and the start of the parliament session,” Anand James, co-head, technical research, Geojit BNP Paribas told IANS.

Major results like Infosys, HDFC Bank and Sun Pharma have been released till now which have had an impact on stock or sector specific indices.

Investors are also anxious about the ability of the government to pass key bills like goods and services tax (GST) and land bill during the monsoon session.

According to James, markets were also nervous about the upcoming futures and options (F&O) expiry on July 30 and the RBI’s monetary policy review which will be conducted on August 4.

“The upcoming monetary policy review which will decide a cut in key lending rates are also making the markets nervous. This might be the last chance for the Reserve Bank of India to cut lending rates before the inflation spirals up again and the US Fed decides on its own rates in September,” James added.

Sector-wise, healthcare, fast moving consumer goods (FMCG) and oil and gas stocks came under selling pressure. However, information technology (IT), technology, entertainment and media (TECK) and automobile index was trading higher.

The S&P BSE healthcare index plunged 880.79 points, FMCG index receded by 95.79 points and oil and gas index was down 61.21 points.

The BSE S&P automobile index rose by 51.80 points.

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