Negative global cues dent equity markets

Mumbai, April 25 (IANS) Negative global cues, coupled with unwinding of long positions, depressed the Indian equity markets on Monday.

This led the key indices of the Indian equity markets to end the day's trade in the red.

The wider 50-scrip Nifty of the National Stock Exchange (NSE) closed lower by 44.25 points or 0.56 percent, at 7,855.05 points.

The barometer 30-scrip sensitive index (Sensex) of the BSE, which opened at 25,891.03 points, closed at 25,678.93 points -- down 159.21 points, or 0.62 percent, from the previous close at 25,838.14 points.

The Sensex touched a high of 25,891.03 points and a low of 25,585.93 points during the intra-day trade.

The BSE market breadth was tilted in favour of the bears -- with 1,578 declines and 1,042 advances.

Both the key indices had ended on a flat-to-negative note during the previous trade session on April 22. The barometer index had closed lower by 74 points or 0.29 percent, while the NSE Nifty slipped by 24 points or 0.30 percent.

Initially on Monday, the key indices opened on a flat note as they were dragged lower by negative Asian markets and a weak close of the US exchanges on Friday.

Besides, investors were seen cautious ahead of the US FOMC (US federal open market committee) meet slated for April 27-28.

The US FOMC meet assumes significance as it will decide the future course of the US interest rates. A hike in interest rates is expected to lead away Foreign Portfolio Investors (FPIs) from emerging markets such as India.

In addition, weak crude oil prices and upcoming monetary policy review by the Bank of Japan (BoJ) dented sentiments.

Investors were seen reluctant to chase prices ahead of the futures and options (F&O) expiry and release of key quarterly results.

"Profit booking and unwinding of long positions continued. The lack of value buying and bargain hunting allowed prices to slip," Anand James, chief market strategist, Geojit BNP Paribas Financial Services, told IANS.

"Caution prevailed ahead of several events like the FOMC meet, derivative expiry and BoJ's monetary policy review. Negative global cues dampened sentiments."

According to Vaibhav Agarwal, vice president and research head at Angel Broking, Indian markets ended on a negative note led by weak Asian cues.

"Globally, cues could remain volatile as investors await central bank meetings in the United States and Japan this week," Agarwal said.

Nitasha Shankar, senior vice president for research with YES Securities, cited that bank index ended in the red led by profit booking in the public sector undertaking banking stocks.

"Broader markets also came under profit booking mode ending in the red in line with headline indices. All major sectorial indices ended in the red barring the IT (information technology) and private banking index," Shankar noted.

The foreign institutional investors (FIIs) were net buyers during the day's trade, while the domestic institutional investors (DIIs) were net sellers.

Data with stock exchanges showed that FIIs purchased stocks worth Rs.222.34 crore and the DIIs sold scrip worth Rs.747.95 crore.

Sector-wise, intense selling pressure was witnessed in automobile, healthcare, and oil and gas sectors, whereas buying was witnessed in stocks of IT, technology, entertainment and media (TECK), and telecom.

The S&P BSE automobile index receded by 163.22 points, followed by the healthcare index, which declined by 130.78 points; and the oil and gas index fell by 89.55 points.

In contrast, the S&P BSE IT index gained 20.38 points, followed by the TECK index, which rose by 18.21 points; and the telecom index inched up by 8.65 points.

Major Sensex gainers during Monday's trade were Bharti Airtel, up 1.63 percent at Rs.358.85; Tata Consultancy Services (TCS), up 1.29 percent at Rs.2,448.30; Bajaj Auto, up 0.88 percent at Rs.2,543.25; Adani Ports, up 0.61 percent at Rs.231.90; and ICICI Bank, up 0.46 percent at Rs.253.10.

Major Sensex losers during the day's trade were Reliance Industries, down 2.18 percent at Rs.1,016.15; Maruti Suzuki, down 2.18 percent at Rs.3,734.30; NTPC, down 2.13 percent at Rs.140.10; ONGC, down 1.85 percent at Rs.212.15; and Tata Steel, down 1.77 percent at Rs.347.55.