Mumbai, Aug 25 (IANS): Indian equity markets were subdued during the mid-afternoon session on Thursday as volatility was induced by futures and options (F&O) expiry, coupled with negative global cues.
Consequently, the key indices traded in the red, as heavy selling pressure was witnessed in information technology (IT), automobile and metal stocks.
The wider 51-scrip Nifty of the National Stock Exchange (NSE) edged down 39.60 points, or 0.46 per cent to 8,610.70 points.
The barometer 30-scrip sensitive index (Sensex) of the BSE, which opened at 28,103.60 points, traded at 27,919.19 points (at 2.45 p.m.) -- down 140.75 points, or 0.50 per cent from the previous close at 28,059.94 points.
The Sensex has so far touched a high of 28,154.21 points and a low of 27,861.22 points during the intra-day trade.
The BSE market breadth was tilted in favour of the bears -- with 1,441 declines and 1,178 advances.
On Wednesday, both the key Indian indices had closed on a flat-to-positive note, despite mixed global cues and lower crude oil prices.
The barometer index had risen by 69.73 points or 0.25 per cent, while the NSE Nifty edged up 17.70 points, or 0.21 per cent.
Initially on Thursday, the benchmark indices opened on a positive note, in spite of mixed cues from their Asian peers and negative US markets. However, later in the day, they experienced volatility due to futures and options (F&O) expiry and capped gains.
The markets also traded with apprehension as caution prevailed ahead of US Fed Chair Janet Yellen's speech on Friday -- a pointer to a possible interest rate hike, which can potentially lead FPIs (Foreign Portfolio Investors) away from emerging markets such as India.
“The indices are in the negative mainly due to the derivatives expiry. The markets, which were attempting to rise, started falling from higher levels,” Anand James, Chief Market Strategist at Geojit BNP Paribas Financial Services, told IANS.
“In addition, the European markets fell sharply by almost 1.4 per cent. These factors contributed to the fall in the domestic markets.”