Profit booking suppresses Indian equities

Mumbai, Dec 19 (IANS) Profit booking, coupled with broadly negative global indices and a weak rupee, suppressed the Indian equities markets during the mid-afternoon trade session on Monday.

The key indices traded on a flat note — marginally in the red, as heavy selling pressure was witnessed in consumer durables, capital goods and automobile stocks.

The wider 51-scrip Nifty of the National Stock Exchange (NSE) inched down by 15.30 points or 0.19 per cent at 8,124.15 points.

The barometer 30-scrip Sensitive Index (Sensex) of the BSE, which opened at 26,505.66 points, traded at 26,446.83 points (at 2.45 p.m.) — down 42.73 points or 0.16 per cent from the previous close at 26,489.56 points.

The Sensex has touched a high of 26,505.66 points and a low of 26,369.28 points during the intra-day trade so far.

The BSE market breadth was tilted in favour of the bears — with 1,405 declines and 1,159 advances.

“After digesting the US Fed’s rate hike decision, lack of major triggers has affected the equity markets. Most Asian markets traded lower,” SMC Global Securities said in a commentary to IANS.

“The markets have largely underperformed in the recent past because of demonetisation and the closing of the Winter Session of the parliament without getting any bills passed, while some confusion pertained with regard to GST.”

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

“IT, banking, FMCG, cement and power stocks traded with bearish sentiments, whereas pharma, auto, oil-gas, textile and media-entertainment stocks traded with sideways to firm sentiments,” Desai said.

“USD/INR futures prices traded with sideways sentiments.”

The equity markets were dragged lower by broadly negative global markets, coupled with an outflow of foreign funds, on Friday last week.

The barometer index was down 29.51 points or 0.11 per cent, while the NSE Nifty inched down by 14.15 points or 0.17 per cent.

–IANS

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