Negative global cues subdue equity markets

Mumbai, Oct 27 (IANS) Negative global indices, coupled with lower crude oil prices and a weak rupee subdued the Indian equity markets during the late-afternoon trade session on Thursday.

Besides, disappointing quarterly earning results, caution over the rise in non-performing asset (NPAs) levels of the banking sector and a weak rupee, too, dragged the key indices lower.

The decline in Tata Group’s subsidiaries stock prices a day after ousted Chairman of Tata Sons Cyrus P. Mistry alleged corporate misconduct dented investors’ sentiments.

However, short covering and value buying at lower levels arrested the falls.

The wider 51-scrip Nifty of the National Stock Exchange (NSE) fell by 28.45 points or 0.33 per cent to 8,586.80 points.

The barometer 30-scrip sensitive index (Sensex) of the BSE, which opened at 27,808.63 points, traded at 27,809.13 points (2.45 p.m.) — down 27.38 points or 0.10 per cent from the previous close at 27,836.51 points.

The Sensex has so far touched a high of 27,895.70 points and a low of 27,665.60 points during the intra-day trade.

The BSE market breadth was skewed in favour of the bears — with 1,629 declines and 987 advances.

According to Dhruv Desai, Director and Chief Operating Officer of Tradebulls: “Even though CNX Nifty witnessed some recovery from lower levels due to short covering it continued to trade lower.”

“Volatility was seen in IT, banking, auto and oil-gas stocks due to short covering, whereas pharma stocks held on to their initial gains on buying support.”