Negative global cues dent equity markets

MUMBAI, April 25: Negative global cues, coupled with unwinding of long positions, depressed the Indian equity markets on Monday.

This led the key indices of the Indian equity markets to end the day’s trade in the red.

The wider 50-scrip Nifty of the tiol Stock Exchange (NSE) closed lower by 44.25 points or 0.56 per cent, at 7,855.05 points.

The barometer 30-scrip sensitive index (Sensex) of the BSE, which opened at 25,891.03 points, closed at 25,678.93 points — down 159.21 points, or 0.62 per cent, from the previous close at 25,838.14 points.

The Sensex touched a high of 25,891.03 points and a low of 25,585.93 points during the intra-day trade.

The BSE market breadth was tilted in favour of the bears — with 1,578 declines and 1,042 advances.

Both the key indices had ended on a flat-to-negative note during the previous trade session on April 22. The barometer index had closed lower by 74 points or 0.29 per cent, while the NSE Nifty slipped by 24 points or 0.30 percent.

Initially on Monday, the key indices opened on a flat note as they were dragged lower by negative Asian markets and a weak close of the US exchanges on Friday.

Besides, investors were seen cautious ahead of the US FOMC (US federal open market committee) meet slated for April 27-28.

The US FOMC meet assumes significance as it will decide the future course of the US interest rates. A hike in interest rates is expected to lead away Foreign Portfolio Investors (FPIs) from emerging markets such as India.

In addition, weak crude oil prices and upcoming monetary policy review by the Bank of Japan (BoJ) dented sentiments.

Investors were seen reluctant to chase prices ahead of the futures and options (F&O) expiry and release of key quarterly results.

“Profit booking and unwinding of long positions continued. The lack of value buying and bargain hunting allowed prices to slip,” And James, chief market strategist, Geojit BNP Paribas Fincial Services, told IANS.

“Caution prevailed ahead of several events like the FOMC meet, derivative expiry and BoJ’s monetary policy review. Negative global cues dampened sentiments.”

According to Vaibhav Agarwal, vice president and research head at Angel Broking, Indian markets ended on a negative note led by weak Asian cues.

“Globally, cues could remain volatile as investors await central bank meetings in the United States and Japan this week,” Agarwal said.

Nitasha Shankar, senior vice president for research with YES Securities, cited that bank index ended in the red led by profit booking in the public sector undertaking banking stocks.

“Broader markets also came under profit booking mode ending in the red in line with headline indices. All major sectorial indices ended in the red barring the IT (information technology) and private banking index,” Shankar noted.

The foreign institutiol investors (FIIs) were net buyers during the day’s trade, while the domestic institutiol investors (DIIs) were net sellers.

Data with stock exchanges showed that FIIs purchased stocks worth Rs 222.34 crore and the DIIs sold scrip worth Rs 747.95 crore.

Sector-wise, intense selling pressure was witnessed in automobile, healthcare, and oil and gas sectors, whereas buying was witnessed in stocks of IT, technology, entertainment and media (TECK), and telecom.

The S&P BSE automobile index receded by 163.22 points, followed by the healthcare index, which declined by 130.78 points; and the oil and gas index fell by 89.55 points.

In contrast, the S&P BSE IT index gained 20.38 points, followed by the TECK index, which rose by 18.21 points; and the telecom index inched up by 8.65 points.

Major Sensex gainers during Monday’s trade were Bharti Airtel, up 1.63 per cent at Rs 358.85; Tata Consultancy Services (TCS), up 1.29 per cent at Rs 2,448.30; Bajaj Auto, up 0.88 per cent at Rs 2,543.25; Adani Ports, up 0.61 per cent at Rs 231.90; and ICICI Bank, up 0.46 per cent at Rs 253.10.

Major Sensex losers during the day’s trade were Reliance Industries, down 2.18 percent at Rs 1,016.15; Maruti Suzuki, down 2.18 per cent at Rs.3,734.30; NTPC, down 2.13 per cent at Rs 140.10; ONGC, down 1.85 per cent at Rs 212.15; and Tata Steel, down 1.77 per cent at Rs 347.55.(IANS)