Indian equities slip on profit booking, negative domestic cues

Mumbai, Dec 12 (IANS) Profit booking, coupled with risks of upcoming global economic events and negative domestic cues pulled the Indian equities markets lower during the mid-afternoon trade session on Monday.

Investors’ sentiments were subdued by sombre domestic cues such as negative macro-data on industrial output and deadlock over the contours of Goods and Services Tax (GST) frame work.

Besides, the upcoming monetary policy review in the US and Britain spooked investors.

The key Indian indices traded with losses of more than half a per cent each, as heavy selling pressure was witnessed in automobile, banking and consumer durables stocks.

The wider 51-scrip Nifty of the National Stock Exchange (NSE) edged down by 56.95 points or 0.69 per cent to 8,204.80 points.

Similarly, the barometer 30-scrip sensitive index (Sensex) of the BSE, which opened at 26,725.31 points, traded at 26,609.83 points (at 1.45 p.m.) — down 137.35 points or 0.51 per cent from the previous close at 26,609.83 points.

The Sensex has touched a high of 26,725.31 points and a low of 26,575.95 points during the intra-day trade so far.

The BSE market breadth was tilted in favour of the bears — with 1,332 declines and 1,118 advances.

“After last week’s rally, the Indian equity markets traded with subdued emotions primarily because of negative IIP data and the GST (Goods and Services Tax) Council’s inability to reach a consensus on the clearance of the draft GST law in its meeting on Sunday,” SMC Global Securities told in a commentary to IANS.

“Caution ahead of the US FOMC meet during the week led investors to book profit at higher levels.”

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

“IT, banking, auto, oil-gas, textile, aviation and media-entertainment stocks traded with bearish sentiments, whereas pharma stocks traded with mixed sentiments due to short covering at lower levels from traders,” Desai said.

“FMCG, cement and power stocks also traded with bearish sentiments due to selling pressure.”

On Friday, the equity markets were marginally lifted by firm global cues, coupled with short covering and higher crude oil prices.

The barometer index was up 52.90 points or 0.20 per cent, while the NSE Nifty edged up by 14.90 points or 0.18 per cent.