Q2 results, NPAs drag equity markets lower

Mumbai, Oct 26 (IANS) Disappointing quarterly earning results, combined with caution over the rise in non-performing asset (NPAs) of the banking sector and negative global cues dragged the Indian equity markets lower during the mid-afternoon trade session on Wednesday.

Besides, lower global crude oil prices and anxiety over the upcoming F&O (futures and options) expiry dented investors’ sentiments.

The wider 51-scrip Nifty of the National Stock Exchange (NSE) edged lower by 61.75 points or 0.71 per cent to 8,629.55 points.

The barometer 30-scrip sensitive index (Sensex) of the BSE, which opened at 28,050.55 points, traded at 27,847.04 points (at 2.30 p.m.) — down 244.38 points or 0.87 per cent from the previous close at 28,091.42 points.

The Sensex has so far touched a high of 28,050.55 points and a low of 27,809.16 points during the intra-day trade.

The BSE market breadth was firmly in favour of the bears — with 1,366 declines and 1,293 advances.

On Tuesday, the equity markets closed in the red due to a massive outflow of foreign funds and profit booking.

The barometer index had receded by 87.66 points or 0.31 per cent to 28,091.42 points, while the NSE Nifty inched lower by 17.65 points or 0.20 per cent to 8,691.30 points.

“Selling pressure was triggered by disappointing quarterly results and growing worries over the rise in the banking sector’s NPA levels,” Anand James, Chief Market Strategist, Geojit BNP Paribas Financial Services, told IANS.

“Lower crude oil prices and negative Asian and European markets too dragged the key domestic indices lower.”

According to Dhruv Desai, Director and Chief Operating Officer of Tradebulls: “IT, banking, pharma and FMCG continue to trade lower on profit booking. Auto and oil-gas stocks witnessed recovery from lower levels on buying support.”

“Sideways price movement of USD/INR futures may support Nifty at lower levels.”