Global cues overweigh domestic cues; markets trade lower

Mumbai, Nov 4 (IANS) Indian equity markets on Friday traded in the negative territory as global uncertainty over the US presidential election four days later overweighed the crucial decision on the Goods and Services Tax (GST) rates.

Both the key indices traded in the red during the mid-afternoon trade session, as heavy selling pressure was witnessed in healthcare, metal and capital goods stocks.

The wider 51-scrip Nifty of the National Stock Exchange (NSE) edged down by 35.25 points or 0.42 per cent to 8,447.70 points.

The barometer 30-scrip sensitive index (Sensex) of the BSE, which opened at 27,465.55 points, traded at 27,329.89 points (at 1.31 p.m.) — down 100.39 points or 0.37 per cent, from its previous close at 27,430.28 points.

The Sensex has so far touched a high of 27,48.91 points and a low of 27,300.02 points during the intra-day trade.

The BSE market breadth was skewed in favour of the bears — with 2,108 declines and 633 advances.

On Thursday, the benchmark indices were dragged by global cues. The barometer index had declined by 96.94 points or 0.35 per cent, while the NSE Nifty edged down by 29.05 points or 0.34 per cent.

“Uncertainty over the upcoming US presidential election is hiking the negative sentiment in the markets. Although the GST rate decision has come, which is very positive for the markets, global cues are over weighing the markets over local cues,” Astha Jain, Senior Research Analyst, Hem Securities, told IANS.

“The US non-farm payrolls data is expected later in the evening, which will also signal if there will be a rate-hike in the mid-December.”

According to Dhruv Desai, Director and Chief Operating Officer of Tradebulls, the CNX Nifty traded with bearish sentiments tracking bearish global cues and selling pressure.

“Banking, pharma, auto, oil-gas and textile stocks witnessed selling pressure,” Desai said.

“Aviation, media-entertainment and power stocks also traded down on selling pressure from traders. FMCG and cement stocks traded with mixed sentiments on short covering and lower level buying.”