Negative global cues dent equity markets 

Mumbai, May 7 (IANS) Negative global cues, along with disappointing fourth quarter results and profit booking, dented the Indian equity markets during the just concluded weekly trade.

Consequently, the equity markets closed the previous week on a flat-to-negative note, as the market breadth of the key Indian indices turned negative.


During the week under review, the wider 51-scrip Nifty of the National Stock Exchange (NSE) slipped by 116.35 points or 1.48 percent to 7,733.45 points.

The barometer 30-scrip sensitive index (Sensex) of the BSE declined by 378.12 points or 1.47 percent to 25,228.50 points.

Among the sector-based indices of the BSE — the metal index edged lower by 3.6 percent, while the IT index was down 2.7 percent.

“Key benchmark indices registered small losses amid volatility throughout the week on negative global cues,” Vaibhav Agarwal, vice president and research head at Angel Broking, told IANS.

Anand James, chief market strategist, Geojit BNP Paribas Financial Services pointed out that Indian stocks slipped throughout the last week as FPIs (Foreign Portfolio Investors) consistently sold equities.

The data with the stock exchanges revealed that FPIs sold stocks worth Rs.747.60 crore during the week under review.

Figures from the National Securities Depository Limited (NSDL) showed that the FPIs divested Rs.773.62 crore or $116.58 million in the equity markets from May 2-6.

Globally, Asian markets remained subdued after the International Monetary Fund (IMF) warned about the possibility of a slowdown in China and Japan.

Other international markets receded after macro-economic data on manufacturing activity showed a decline in major economies and on fears of further plunge in global commodity prices.

“Economic data released from across the globe, showing that manufacturing activity weakened, set the tone for the week,” James said.

“While Japan was closed for most of the week, other Asian markets remained largely in the red with China seeing a three percent plunge on Friday.”

James added that the US, as well as the European markets remained volatile due to the release of quarterly earning results.

Investors also remained cautious ahead of the release of US non-farm payrolls data.

Besides, profit booking and less-than-expected Q4 (fourth quarter) results dampened investors’ sentiments in the domestic markets.

In addition, investors were disappointed after a key macro-economic data showed slight decline in services output for April.

However, falls were mitigated, as value buying at lower levels and prediction of healthy monsoon rains by international weather forecasters supported prices.

Investors’ sentiments was kept upbeat after Lok Sabha passed the Finance Bill 2016 with 55 amendments. This improved the potential for other key economic legislation getting the green signal from the parliament.

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