Global concerns, slowing domestic growth dent markets 

Mumbai, Feb 9 (IANS) Disappointing macro-economic data, coupled with a massive plunge in Japanese indices and a weak rupee subdued Indian equity markets on Monday.

This dragged a barometer index of the Indian equity markets down by 253 points.

Initially, both the bellwether indices of Indian equity markets opened on a negative note following Monday’s falls in domestic markets and US stocks. Sentiments were subdued by a sharp plunge in Japanese indices during the early trade on Tuesday.

Further, investors were seen disappointed over the third quarter (Q3) earnings results of corporate India, as well as a fall in the country’s Q3 GDP (gross domestic product) numbers.

In addition, a weak rupee unnerved investors. The Indian rupee again breached the level of 68 to a US dollar.

“Indian rupee had opened weaker on the back of carnage across Asian markets, followed by risk-off sentiments from the US markets overnight,” Anindya Banerjee, associate vice president for currency derivatives with Kotak Securities, told IANS.

“It opened around 68.15 levels on spot and it weakened towards 68.25/26 levels before seeing export hedging and RBI selling, cushioning it. Global market sentiment would remain the driving force.”

Even weak crude oil prices which stood below the $30 per barrel of 159 litres levels dented sentiments.

Furthermore, absence of any positive triggers and investors’ doubts over the government’s ability to perk up investments dragged markets lower.

Consequently, the barometer 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE) receded by 253 points or 1.04 percent.

Similarly, the wider 50-scrip Nifty of the National Stock Exchange (NSE) traded in the negative territory. It was lower by 83 points, or 1.12 percent, at 7,304.55 points.

The S&P BSE Sensex, which opened at 24,076.85 points, was trading at 24,034.77 points (2.30 p.m.) — down 252.65 points or 1.04 percent from the previous day’s close at 24,287.42 points.

It has touched a high of 24,111.19 points and a low of 23,919.47 points during the intra-day trade.

The S&P BSE market breadth favoured the bears — with 1,809 declines and 664 advances.

“Absence of any positive trigger and concerns over global growth cascaded into the sharp plunge in Indian markets,” Anand James, co-head, technical research desk with Geojit BNP Paribas Financial Services, told IANS.

Vaibhav Agarwal, vice president and research head at Angel Broking, elaborated that markets corrected sharply on the back of continued weakness in global markets.

“US markets saw a sell off yesterday led by a fall in crude prices on the back of global growth concerns,” Agarwal explained.

“The sell-off is quite broad based with an advance decline ratio of 1:3. Markets are now trading near some key support levels and we may witness value buying to emerge at lower levels.”

Nitasha Shankar, vice president for research with YES Securities, cited that IT stocks continues to bleed with sharp cuts, following sell-off in the Nasdaq index.

“Broader markets are also trading with weakness in line with the headline indices. Bank Index is also contributing to the fall as profit booking is seen across the board,” Shankar noted.

“All major Indices are trading in the red.”

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