Equity markets slip on caution ahead of macro data


Mumbai, May 31 (IANS): After four consecutive sessions of gains, the Indian equity markets on Wednesday closed on a flat-to-negative note amidst volatility, despite scaling fresh record intra-day.

According to market analysts, investors were cautious ahead of the release of India's quarterly estimates of GDP, eight core industries (ECI) and fiscal deficit data.

In the intra-day trade, both the wider 51-scrip NSE Nifty and the 30-scrip Sensitive Index (Sensex) of the BSE touched new highs --Nifty of 9,649.60 points, and Sensex of 31,255.28 points.

On a closing basis, the NSE Nifty was a tad down by 3.30 points or 0.03 per cent at 9,621.25 points.

The BSE Sensex, which opened at 31,222.51 points, closed at 31,145.80 points -- down 13.60 points or 0.04 per cent from its previous close of 31,159.40 points.

The BSE market breadth, however, was bullish -- with 1,380 advances and 1,291 declines.

"Markets ended with marginal losses on Wednesday after four sessions of gains. Lacklustre trading was witnessed for almost the entire trading session with exception of brief moderate gains seen by the index in mid-afternoon trade, during which the Nifty hit a new life high," Deepak Jasani, Head - Retail Research, HDFC Securities, told IANS.

"Broad market indices like the BSE mid-cap and small-cap indices rose and outperformed the main indices. Major Asian markets ended on a mixed note, while European indices like FTSE 100, CAC 40 and DAX traded higher." 

The S&P BSE mid-cap index rose by 0.94 per cent and the small-cap index by 1.05 per cent.

Anand James, Chief Market Strategist, Geojit Financial Services, said: "With major earnings already out, market is looking for further cues to surge ahead, and will look up to the macros that are about to be released."

"Upcoming monsoon session (of Parliament) will keep markets expectant, with banks continuing to stay afloat in anticipation of NPA resolution measures," he added.

On the currency front, the rupee strengthened by 15-16 paise to 64.50-51 per US dollar from its previous close of 64.66.

"BSE Sensex and Nifty closed lower amid profit booking and maintaining cautious stance as GDP data is due to release later today. It looks like market is consolidating after the rally," Dhruv Desai, Director and Chief Operating Officer of Tradebulls, told IANS.

"The metals sector was down considerably today as Vedanta, Sail, Hindzinc dragged the sector down," he said.

Sector wise, the S&P BSE metal index fell by 162.62 points, the IT index by 79.63 points and the Teck (technology, media and entertainment) index by 37.65 points.

On the other hand, the S&P automobile index rose by 165.82 points, the banking index by 144.83 points, and the consumer durables index by 118.97 points.

Major Sensex gainers on Wednesday were: Mahindra and Mahindra, up 3.99 per cent at Rs 1,419.35; Lupin, up 2.75 per cent at Rs 1,161.20; Gail, up 2.62 per cent at Rs 415.65; Power Grid, up 1.89 per cent at Rs 207.80; and ICICI Bank, up 1.76 per cent at Rs 326.30.

Major Sensex losers were: Infosys, down 1.96 per cent at Rs 976.95; Coal India, down 1.42 per cent at Rs 263.30; Sun Pharma, down 1.36 per cent at Rs 501.40; Reliance Industries, down 1.34 per cent at Rs 1,340.60; and Tata Steel, down 1.14 per cent at Rs 504.90.

 

 
  

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