Profit booking, negative global cues subdue equities

Mumbai: Profit booking, coupled with broadly negative global indices, pulled the Indian equities markets lower during the mid-afternoon trade session on Tuesday.

The key indices, which opened on a positive note, traded marginally in the red, as heavy selling pressure was witnessed in metal, oil and gas, and energy stocks.

The wider 51-scrip Nifty of the National Stock Exchange (NSE) fell by 17.20 points or 0.20 per cent, to 8,395.60 points.

The barometer 30-scrip sensitive index (Sensex) of the BSE, which opened at 27,331.82 points, traded at 27,227.12 points (at 1.45 p.m.) — down 61.05 points or 0.22 per cent from the previous close at 27,238.06 points.

The Sensex has touched a high of 27,381.43 points and a low of 27,179.19 points during the intra-day trade so far.

The BSE market breadth was marginally tilted in favour of the bears — with 1,293 declines and 1,287 advances.

According to Dhruv Desai, Director and Chief Operating Officer of Tradebulls, automobile, metal and banking sectors dragged the market down, while profit booking was witnessed in the banking sector.

“The Indian rupee is strong against the US dollar and traded at around 68.14,” Desai said.

“European and Asian markets traded in the negative zone ahead of the highly-anticipated speech by British Prime Minister Theresa May on plans for Brexit and China’s President Xi Jinping speech on economic policy in Davos ahead of the inaugural speech by President-elect Donald Trump at the end of the week.”

On Monday, the benchmark indices closed on a flat-to-positive note on expectations of healthy third-quarter (Q3) results.

The NSE Nifty rose by 12.45 points or 0.15 per cent, to 8,412.80 points, while the BSE Sensex was up 50.11 points or 0.18 per cent.