Heavy selling pressure drags equity indices lower, Nifty50 sub-9,700

Mumbai, Aug 11 (IANS) Dragged lower by intense selling activities in automobile, metal and banking stocks, along with negative global cues, the key Indian equity indices -- the BSE Sensex and the NSE Nifty50 -- traded with losses for the fifth consecutive session on Friday.

According to market observers, the key indices traded deep in the red during the mid-afternoon trade session subdued by heavy selling in individual index heavyweights like State Bank of India, Reliance Industries, Cipla and Mahindra & Mahindra, among others.

At one point of time, the Nifty50 of the National Stock Exchange (NSE) traded below the psychologically important 9,700-mark, which was breached for the first time on June 6.

At 2.30 p.m., the Nifty50 traded 109.85 points, or 1.12 per cent, lower at 9,710.40 points.

The 30-scrip Sensitive Index (Sensex) of the BSE, which opened at 31,355.92 points, traded at 31,206.60 points -- down 324.73 points, or 1.03 per cent, from its previous close at 31,531.33 points.

The Sensex has so far touched a high of 31,379.20 points and a low of 31,128.02 points during the intra-day trade.

The BSE market breadth was bearish -- with 1,704 declines and 749 advances.

"Over 400 companies will report their corporate earnings today, will may lead to specific stock reactions. Investors will eye the Q1 results of country's biggest lender State Bank of India," Dhruv Desai, Director and Chief Operating Officer of Tradebulls, told IANS.

On Thursday, the benchmark indices were pulled lower by negative global cues, a weak rupee, and heavy selling pressure.

The NSE Nifty50 closed lower by 87.80 points, or 0.89 per cent, at 9,820.25 points, while the Sensex closed at 31,531.33 points -- down 266.51 points, or 0.84 per cent.