Uncertain global cues subdue equity markets

Uncertain global cues subdue equity markets 

Mumbai, June 22 (IANS) Uncertain global cues, profit booking and a weak rupee depressed the Indian equity markets on Wednesday.

Consequently, the key indices traded marginally in the red during the mid-afternoon session, as heavy selling pressure was witnessed in automobile, capital goods and banks’ stocks.

The wider 51-scrip Nifty of the National Stock Exchange (NSE) edged down by 58.10 points or 0.71 per cent, at 8,161.80 points.

The barometer 30-scrip sensitive index (Sensex) of the BSE, which opened at 26,791.68 points, traded at 26,620.85 points (at 1.45 p.m.) — down 191.93 points or 0.72 per cent from the previous close at 26,812.78 points.

The Sensex has so far touched a high of 26,887.29 points and a low of 26,617.45 points during the intra-day trade.

The BSE market breadth was skewed in favour of the bears — with 1,450 declines and 960 advances.

On Tuesday, the key indices ended on a lower note due to profit booking, uncertain global cues and a weak rupee.

The barometer index on Tuesday fell by 54.14 points or 0.20 per cent, while the NSE Nifty slipped by 18.60 points, or 0.23 per cent.

Initially, both the key indices opened on a flat-to-negative note, in sync with their subdued Asian peers.

Investors remained cautious ahead of Britain’s upcoming referendum on whether or not to stay on in the European Union. The island nation will go in for a referendum on this issue on Thursday.

“The equity markets are trading flat on the back of thin volumes and ahead of the referendum in Britain. Profit booking and weak rupee also dragged the equity markets lower,” Anand James, Chief Market Strategist at Geojit BNP Paribas Financial Services, told IANS.

Dhruv Desai, Director and Chief Operating Officer of Tradebulls, pointed out that stock specific movements were witnessed during the relatively flat trade session at the equity markets.

“Advance decline ratio is also equal indicating cautious note ahead of crucial Brexit vote,” Desai said.

According to Nitasha Shankar, Senior Vice President for Research with YES Securities, broader markets traded on a mixed note.

“Metal and auto indices are trading lower led by profit booking. Pharma and reality indices are trading in the green,” Shankar noted.

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