Indian equity markets trade lower on profit booking

Indian equity markets trade lower on profit booking 

Mumbai, July 29 (IANS) Indian equity markets traded in the red on Friday prompted by profit booking and negative global cues.

Both the key indices traded lower during the mid-afternoon trade session as heavy selling pressure was witnessed in banking, consumer durables, and capital goods stocks.

The wider 51-scrip Nifty of the National Stock Exchange (NSE) edged down 25 points or 0.29 per cent to 8,645.45 points.

The BSE Sensex, which opened at 28,232.87 points, traded at 28,086.12 points (at 2 p.m.) — down 122.50 points or 0.43 per cent from the previous close at 28,208.62 points.

The Sensex has so far touched a high of 28,233.47 points and a low of 28,076.48 points during the intra-day trade.

The BSE market breadth was slightly tilted in favour of the bears — with 1,256 declines and 1,269 advances.

On Thursday, the benchmark indices closed higher prompted by expectations of the GST (Goods and Services Tax) bill clearing parliament, short covering and fresh influx of foreign funds.

The barometer index had gained 184.29 points or 0.66 per cent, while the NSE Nifty edged up 50.50 points or 0.59 per cent.

Initially on Friday, the markets opened on a flat note, in sync with their Asian peers. The Asian markets, especially the Japanese indices, fell ahead of the Bank of Japan’s (BoJ) monetary policy review.

Moreover, volatility that was flared by the futures and options (F&O) expiry on Thursday led the investors to book profits and hampered the market’s upward trajectory.

Besides, some cautiouness prevailed in the markets on the chances of the GST (Goods and Services Tax) Bill getting passed during parliament’s ongoing monsoon session.

Further, lower global crude oil prices, too, eroded investors’ confidence.

“Nervousness prevails in the markets as the GST decision is still not out. The second major reason that can be attributed to is profit booking,” Manish Hathiramani, Proprietary Trader and Technical Analyst at Deen Dayal Investments, told IANS.

“Overall, many sectors in the markets are performing quite well. The trend continues to be up and on every fall, people will only look at accumulation. The macro picture continues to be on the upside,” he added.

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