Mumbai, Jan 18 (IANS) Falling exports, coupled with a continuous weakness in global crude oil prices and caution over third quarter results, depressed Indian equity markets during the late-afternoon trade session on Monday.
This resulted in a barometer index to recede by 165 points.
Both the bellwether indices of the Indian equity markets even touched their new 52-week low during the intra-day trade.
Disappointing December exports’ data, which touched a 13-month low, absence of fresh triggers and bearish global cues dented sentiments.
Caution prevailed over the upcoming global macro-economic data from China, the UK and the US.
Besides, long-liquidation positions and disappointing macro-data which was released earlier in the week eroded investors’ hopes for an interest rate cut during the upcoming monetary policy review of the central bank.
On Tuesday, the US is expected to release its consumer price index (CPI), while China comes out with its index of industrial production (IIP) and GDP (gross domestic product) data points.
Initially, both the Indian bellwether indices opened on a negative note, following lower closing of the US markets on Friday, when they crashed by 2.39 percent and last week’s steep falls.
However, both indices soon pared their initial losses on the back of positive European markets, expectations of healthy Q3 results and short-covering.
In addition, prices were supported by Prime Minister Narendra Modi’s “Start-Up India Action Plan” which was released on Saturday.
The barometer 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE) was trading lower by 165 points or 0.67 percent.
Similarly, the wider 50-scrip Nifty of the National Stock Exchange (NSE) was trading in the red. It was down by 48.20 points or 0.65 percent at 7,389.60 points.
The NSE Nifty again breached the psychological level of 7,500 points during the intra-day trade. It touched a new 52 week low at 7,379.45 points.
The S&P BSE Sensex, which opened at 24,400.78 points, was trading at 24,290.45 points (2.45 p.m.) — down 164.59 points or 0.67 percent from the previous day’s close at 24,455.04 points.
During the intra-day trade the Sensex touched a high of 24,524.85 points and a low of 24,268.60 points — its new low in 52 weeks.
The S&P BSE market breadth favoured the bears — with 2,324 declines and only 335 advances.
“Bearish cues — such as the plunge in exports, lower closing of US markets on Friday, and continuous weakness in oil prices and absence of any fresh triggers pulled-down markets,” Anand James, co-head, technical research desk with Geojit BNP Paribas Financial Services, told IANS.
“After a lower opening the markets’ recovered on the back of positive European markets and short-covering.”