Profit booking, weak rupee drag equity markets lower

Mumbai, Nov 11 (IANS) Profit booking, a weak rupee and lower crude oil prices dragged the Indian equity markets lower during the mid-afternoon trade session on Friday.

The key indices traded with losses of more than 1.5 per cent each, as heavy selling pressure was witnessed in automobile, consumer durables and banking stocks.

The wider 51-scrip Nifty of the National Stock Exchange (NSE) edged down by 145.60 points or 1.71 per cent, to 8,380.15 points.

The barometer 30-scrip sensitive index (Sensex) of the BSE, which opened at 27,344.85 points, traded at 27,105.64 points (at 1.30 p.m.) — down 412.04 points or 1.50 per cent, from its previous close at 27,517.68 points.

The Sensex has so far touched a high of 27,344.85 points and a low of 26,992.77 points during the intra-day trade.

The BSE market breadth was skewed in favour of the bears — with 2,101 declines and 410 advances.

On Thursday, the key Indian indices had made substantial gains on the back of positive global markets and short covering.

The barometer index had surged by 437.01 points or 1.60 per cent, and the Nifty had rose by 149.05 points, or 1.77 per cent.

“The domestic markets are trading in the red as investors are booking profits on the last trading day of the week,” Astha Jain, Senior Research Analyst at Hem Securities, told IANS.

“The rupee has weakened on the back of the dollar gaining strength. This has also increased the possibility of a US Fed rate-hike in December.”

According to Dhruv Desai, Director and Chief Operating Officer of Tradebulls, the CNX Nifty traded on selling pressure from traders.

“IT and banking stocks witnessed some recovery from lower levels. Pharma and auto stocks also witnessed some recovery from lower levels,” Desai said.

“Oil-gas, textile, aviation, FMCG, cement and power stocks traded down on selling pressure. The Indian equity markets likely to trade volatile in the second half of the session due to short covering and volatile USD/INR futures prices.”

–IANS

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