STOCK MARKET BSE NSE

Inflation Weighs Heavy on Markets, Sensex Down 72 Points

The bellwether indices\' receded after making healthy gains as key macro-data showed an acceleration in inflation trends.

Published: 14th January 2016 03:23 PM  |   Last Updated: 14th January 2016 03:23 PM   |  A+A-

By IANS

MUMBAI: Diminishing hopes of an interest rate cut, coupled with caution over the third quarter results and thin volumes depressed the Indian equity markets during a volatile late-afternoon trade session on Thursday.

This led to a barometer index to trade in the red.

The bellwether indices' receded after making healthy gains as key macro-data showed an acceleration in inflation trends.

This diminished hopes of a rate cut by the country's apex bank and subdued investors' sentiments.

Caution over the third quarter (Q3) results season, long-liquidation positions and sliding Asian markets, too, dented sentiments.

Initially, both the bellwether indices opened deep in the red, following lower closing of the US markets on Wednesday and a further plunge in oil prices.

However, both indices pared their initial losses as healthy Q3 results, recovering European markets and short-covering restored investors' risk-taking appetite.

Value buying at lower levels, which was prompted by attractive prices, supported the markets' upward movement.

The barometer 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE) was lower by 72 points.

Similarly, the wider 50-scrip Nifty of the National Stock Exchange (NSE) was trading in the red. It was down by 27 points or 0.36 percent at 7,535.55 points.

The S&P BSE Sensex, which opened at 24,606.20 points, was trading at 24,782.61 points (3.00 p.m.), down 71.50 points or 0.29 percent from the previous day's close at 24,854.11 points.

The Sensex has so far touched a high of 25,018.46 points and a low of 24,473.22 points during the intra-day trade.

The S&P BSE market breadth favoured the bears -- with 1,902 declines and 741 advances.

"The general weakness still continues. Investors' are cautious over the Q3 results season, slowdown in domestic reforms and fears of a global markets meltdown," Anand James, co-head, technical research desk with Geojit BNP Paribas Financial Services, told IANS.

"Our markets recovered after a weak opening on the back of short-covering, value buying at lower levels and recovering European markets. Even good Q3 results from an IT major boosted sentiments," James added.

Nitasha Shankar, vice president for research with YES Securities, elaborated that these intra-day pull back rallies were on thin volumes and that correction may resume once these rallies subside.

"Broader markets continue their underperformance as buying is seen in the large cap index weighted stocks," Shankar noted.

"PSU (public sector undertakings) banks, reality, auto and metal indices continue to bleed. The IT index is trading in the green," Shankar added.

More from Business.

Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

IPL_2020
flipboard facebook twitter whatsapp