Mumbai, June 13 (IANS) Bearish global cues, along with disappointing domestic macro-economic data and a weak rupee, dragged the key Indian equity markets lower on Monday.
Consequently, the key indices traded in the red during the mid-afternoon session, as heavy selling pressure was witnessed in banking, automobile and capital goods stocks.
The wider 51-scrip Nifty of the National Stock Exchange (NSE) edged down by 65.30 points, or 0.80 per cent, at 8,104.75 points.
The barometer 30-scrip sensitive index (Sensex) of the BSE, which opened at 26,468.27 points, traded at 26,396.17 points (at 1.30 p.m.) -- down 241.58 points, or 0.91 per cent, from the previous close at 26,635.75 points.
The Sensex during the intra-day trade touched a high of 26,835.16 points and a low of 26,641.02 points.
The BSE market breadth was skewed in favour of the bears -- with 1,540 declines and 842 advances.
The key indices on Friday had closed in the red led by negative global cues. The barometer index had lost 127.71 points or 0.48 per cent, while the NSE Nifty fell by 33.55 points or 0.41 per cent.
Initially on Monday, the key indices opened on a weak note, in sync with their Asian peers and a lower close of the US stock on last Friday.
Asian stocks receded as investors were cautious ahead of the US FOMC's (Federal Open Market Committee) rate setting meeting which is slated to start on Tuesday.
A hike is expected to lead FPIs (Foreign Portfolio Investors) away from emerging markets such as India.
Further, lower crude oil prices and a weak rupee dented key indices.
Besides, the upcoming domestic macro-economic inflation data -- Consumer Price Index (CPI) -- stroked volatility. A rise in CPI inflation may further reduce chances of a future rate cut by the Reserve Bank of India (RBI).
In addition, poor data on industrial production which was released after market hours on Friday last week weighed heavy on sentiments.
"Upcoming major global event risks and bearish international markets dragged the Indian equity indices down," Anand James, Chief Market Strategist, Geojit BNP Paribas Financial Services, told IANS.
"Lower crude oil prices and depreciation in rupee value too hurt investors' sentiments."
Nitasha Shankar, Senior Vice President for Research with YES Securities, pointed out that broader markets traded lower in line with the headline indices.
"All sectorial indices are trading in the red. PSU bank, reality and metal indices are top drags at the moment," Shankar noted.
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