Indian equities pare gains to trade in red

Mumbai, May 3 (IANS) Indian equity markets traded in the red during the mid-afternoon session on Wednesday, suppressed by global cues and selling pressure in banking, healthcare and capital goods stocks.

The key indices, which opened in the green supported by positive global cues and a strong rupee, pared their morning gains and traded on a flat-to-negative note.

Market observers pointed out that investors were cautious ahead of the outcome of the two-day US Federal Open Market Committee (FOMC) meet, due later in the evening.

The wider 51-scrip Nifty of the National Stock Exchange (NSE) inched down by 7.65 points or 0.08 per cent to close at 9,306.15 points.

The barometer 30-scrip Sensitive Index (Sensex) of the BSE, which opened at 29,984.95 points, traded at 29,892.37 points (at 12.45 p.m.) -- down 28.81 points or 0.10 per cent from its previous close at 29,921.18 points.

The Sensex has so far touched a high of 30,020.59 points and a low of 29,867.14 points during the intra-day trade.

The BSE market breadth was bearish -- with 1,408 declines and 1,222 advances.

According to Dhruv Desai, Director and Chief Operating Officer of Tradebulls, the equity benchmark indices (Nifty and Bank Nifty Spot) started off the day on a firm note amid positive global cues and negative opening in USD/INR futures.

"Most pharma sector stocks currently traded with bearish sentiments lead by Biocon and Lupin. IT sector stocks currently witnessed good upside momentum on lower level buying lead by NIITTECH and TCS," Desai told IANS.

Desai added that the equity markets are expected to trade with volatility in the second half of the session as investors await the outcome of the FOMC meeting.

On Tuesday, the benchmark indices closed on a flat-to-positive note. The NSE Nifty inched up by 9.75 points or 0.10 per cent to close at 9,313.80 points, while the BSE Sensex closed at 29,921.18 points -- up a tad 2.78 points or 0.01 per cent.