Negative global cues subdue equity markets
Mumbai, Aug 2 (IANS) Negative global cues coupled with profit booking subdued the Indian equity markets during the mid-afternoon trade session on Tuesday.
Consequently, the key indices traded slightly in the red during a volatile session, as selling pressure was witnessed in metal and healthcare stocks.
However, increased chances of a key economic legislation’s passage during parliament’s monsoon session, value buying and positive macro-economic data supported prices at lower levels.
The wider 51-scrip Nifty of the National Stock Exchange (NSE) edged lower by 12.95 points or 0.15 per cent to 8,623.60 points.
The barometer 30-scrip sensitive index (Sensex) of the BSE, which opened at 28,069.12 points, traded at 27,973.87 points (at 2.30 p.m.) — down 29.25 points or 0.10 per cent from the previous close at 28,003.12 points.
The Sensex has so far touched a high of 28,175.22 points and a low of 27,943.91 points during the intra-day trade.
The BSE market breadth was skewed in favour of the bears — with 1,676 declines and 952 advances.
Both the key Indian indices ended on a lower note during the previous trade session on Monday, on the back of profit booking, along with lower crude oil prices and global event risks.
The barometer index had declined down 48.74 points or 0.17 per cent to 28,051.86 points, while the NSE Nifty edged lower by 1.95 points or 0.02 per cent to 8,636.55 points.
“The key indices came off the day’s highs due to caution ahead of global event risks and profit booking,” Anand James, Chief Market Strategist at Geojit BNP Paribas Financial Services, told IANS.
“However, GST (Goods and Services Tax) Bill slated to come up in the Rajya Sabha and bargain hunting supported prices at lower levels.”
Dhruv Desai, Director and Chief Operating Officer of Tradebulls, pointed out that banking stocks traded sideways to firm on buying support.
“Most sugar sector stocks faced profit booking, while auto stocks held their initial gains,” Desai said.