Global cues, disappointing earnings subdue equities, Nifty50 below 10k

Mumbai, July 28 (IANS) Negative global cues, coupled with disappointing quarterly results and heavy selling pressure in healthcare, banking and capital goods stocks subdued the Indian equity markets during the mid-afternoon trade session on Friday.

The wider Nifty50 of the National Stock Exchange (NSE) slipped below the important 10,000-mark as investors booked profits. Around 12.50 p.m., the Nifty traded 47.90 points, 0.48 per cent lower at 9,972.65 points.

The 30-scrip Sensitive Index (Sensex) of the BSE, which opened at 32,381.36 points, traded at 32,202.71 points -- down 180.59 points or 0.56 per cent, from its previous session's close at 32,383.30 points.

The Sensex has so far touched a high of 32,381.36 points and a low of 32,164.16 points during intra-day trade.

The BSE market breadth was, however, bullish with 1,204 advances and 1,198 declines.

"The Sensex slumped almost 190 points to 32,193.63 and the NSE Nifty cracked below the 10,000-mark in early trade today as the August derivatives series began on a subdued note amid disappointing earnings by corporates. Metal, healthcare, bank, realty, technology, auto, power and IT stocks were trading in the negative zone, down by up to 0.88 per cent," Dhruv Desai, Director and Chief Operating Officer of Tradebulls, told IANS.

"The laggards that pulled down the indices were Lupin, Hindustan Unilever (HUL), Sun Pharma, ONGC, TCS, Bharti Airtel, Reliance Industries, Bajaj Auto, Tata Steel and HDFC Bank. Dr Reddy's remained the biggest loser among Sensex components by slumping 5.13 per cent to Rs 2,487 after the company reported over 57 per cent drop in net profit," he added.

On Thursday, the benchmark indices were dragged lower from peak levels to close on a muted note on the day of derivatives expiry.

The Nifty50 closed lower by a miniscule 0.10 point at 10,020.55 points, while the Sensex, which scaled a new intra-day high of 32,672.66 points, closed at 32,383.30 points.