Negative global cues subdue equity markets

Mumbai, May 6 (IANS) Negative global cues, coupled with profit booking and lower crude oil prices, subdued the Indian equity markets on Friday.

This led to key indices of the Indian equity markets to trade on a negative note during the late afternoon session.

The wider 51-scrip Nifty of the National Stock Exchange (NSE) was lower by 10.35 points, or 0.13 percent, at 7,725.15 points.

The barometer 30-scrip sensitive index (Sensex) of the BSE, which opened at 25,223.67 points, traded at 25,190.54 points (3 p.m.) -- down 71.67 points or 0.28 percent from the previous close at 25,262.21 points.

The Sensex has so far touched a high of 25,260.48 points and a low of 25,057.93 points during the intra-day trade.

The BSE market breadth was tilted in favour of the bears -- with 1,346 declines and 1,081 advances.

Both the key Indian indices had ended on a positive note on Wednesday. The barometer index had gained 160.48 points or 0.64 percent, while the NSE Nifty had closed higher by 29 points or 0.38 percent.

The key indices opened on a flat-to-negative note on Friday. Investors took cues from Asian markets which traded in the red.

Asian markets remained subdued, as the benchmark indices in China and Japan plunged on fears of further decline in global commodity prices.

Besides, lower crude oil prices and caution ahead of the US non-farm payrolls data on Friday dented the equity markets.

However, falls were mitigated, as value buying and expectations that key economic legislation will get parliamentary approval supported prices.

"Negative Asian markets, especially the fall in the Chinese indices dented investors' sentiments. However, value buying at lower levels supported prices," Anand James, chief market strategist, Geojit BNP Paribas Financial Services, told IANS.

According to Vaibhav Agarwal, vice president and research head at Angel Broking, Indian markets opened on a flat note led by weak Asian market.

"Asian stocks edged lower as investors turned cautious before the release of the influential US monthly non-farm payroll data," Agarwal said.

"Gains in stocks of public sector banks and recovery in index heavyweight ITC helped key benchmark indices reduce the intraday losses in afternoon trade."