Profit booking, Asian cues dent equity markets

Profit booking, Asian cues dent equity markets 

Mumbai, Aug 4 (IANS) Profit booking, along with negative Asian indices and a weak rupee, dented the Indian equity markets during the late-afternoon trade session on Thursday.

Even the caution ahead of the risks of key upcoming global events such as the monetary policy announcement by the Bank of England (BoE) subdued the domestic indices. Heavy selling pressure was witnessed in banking and consumer durables stocks.

The wider 51-scrip Nifty of the National Stock Exchange (NSE) edged down 17.35 points or 0.20 per cent to 8,527.50 points.

The barometer 30-scrip sensitive index (Sensex) of the BSE, which opened at 27,899.88 points, traded at 27,653.23 points (at 2.45 p.m.) — down 44.28 points or 0.16 per cent from the previous close at 27,697.51 points.

The Sensex has so far touched a high of 27,921.91 points and a low of 27,627.97 points during the intra-day trade.

The BSE market breadth was tilted in favour of the bears — with 1,327 declines and 1,287 advances.

Both the indices had ended in the red during the previous trade session on Wednesday due to profit booking and weak global cues.

The barometer index plunged by 284.20 points or 1.02 per cent, while the NSE Nifty edged lower by 78.05 points or 0.91 per cent.

“Profit booking, negative Asian markets and caution over the upcoming monetary policy announcement by the BoE dragged the markets lower,” Anand James, Chief Market Strategist at Geojit BNP Paribas Financial Services, told IANS.

“However, falls were arrested due to the passage of the GST Constitutional Amendment Bill by the Rajya Sabha yesterday.”

According to Dhruv Desai, Director and Chief Operating Officer of Tradebulls, banking and pharma stocks traded with mixed sentiments due to profit booking.

“IT stocks faced selling pressure at higher levels, while aviation stocks traded lower on the back of selling pressure in crude oil prices,” Desai noted.

“Sugar sector stocks traded with mixed sentiments on profit booking, whereas FMCG stocks showed some recovery from the day’s low.”

Desai added that selling pressure in USD/INR is likely to limit the Nifty downside.

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