Indian equities slip on profit booking, weak rupee

Mumbai, Jan 2 (IANS) Indian equities markets slipped during the mid-afternoon trade session on Monday, as profit booking and rupee depreciation subdued investors' sentiments.

The key indices traded in the red -- on a flat-to-negative note, as heavy selling pressure was witnessed in banking, finance and FMCG stocks.

The wider 51-scrip Nifty of the National Stock Exchange (NSE) fell by 8.10 points or 0.10 per cent to 8,177.70 points.

The barometer 30-scrip Sensitive Index (Sensex) of the BSE, which opened at 26,711.15 points, traded at 26,600.43 points (at 1.45 p.m.) -- down 26.03 points or 0.10 per cent from the previous day's close at 26,626.46 points.

The Sensex has touched a high of 26,720.98 points and a low of 26,447.06 points during the intra-day trade so far.

However, the BSE market breadth was tilted in favour of the bulls -- with 1,696 advances and 819 declines.

Dhruv Desai, Director and Chief Operating Officer of Tradebulls, told IANS that the CNX Nifty witnessed some recovery from lower levels due to short covering and traded flat.

"IT stocks faced resistance at higher levels mainly due to profit booking," Desai added.

"FMCG and power stocks traded with volatile sentiments due to selling pressure at higher levels."

According to Astha Jain, Senior Research Analyst at Hem Securities, the markets are trading on their own fundamentals taking cues from domestic events in the absence of strong global cues due to the ongoing holiday season.

"Broad-based selling pressure led the markets to trade in the negative. Besides, the rupee is weak as the overseas dollar traded on a stronger note," Jain added.

On Friday last week, the equity markets had closed on a pleasant note on the back of rupee appreciation, firm global cues and value buying.

The barometer index was up 260.31 points or 0.99 per cent to close at 26,626.46 points, whereas the NSE Nifty gained 82.20 points or 1.01 per cent to 8,185.80 points.