Absence of fresh cues dent markets; Sensex down 52 points
Mumbai, Dec 2 (IANS) Lack of any positive trigger coupled with negative macro-economic data points and caution over the upcoming US rate hike subdued Indian equity markets on Wednesday.
Investors were disappointed due to lack of movement over goods and services tax (GST) bill during the winter session of parliament.
Furthermore, absence of any further cues regarding a stimulus package announcement by the European Central Bank (ECB) dented sentiments and led to both the bellwether indices of the Indian equity markets ending the day’s trade in the red.
Initially, both the bellwether indices of the Indian equity markets opened on a firm note following US markets’ positive close on Tuesday.
However, initial gains were capped as investors were concerned over a slowdown in demand which was indicated by a lacklustre eight core industries (ECI) and purchasing managers index (PMI) data.
Even a bearish outlook by the Reserve bank of India (RBI) regarding scheduled cuts in key lending rates depressed sentiments.
In addition to the negative domestic cues, US based developments like the upcoming speech by the US Federal Reserve (US Fed) chairperson Janet Yellen slated for late Wednesday and Friday’s non-farm payrolls data caused volatility here.
The barometer 30-scrip sensitive index (Sensex) of the S&P Bombay Stock Exchange (BSE) closed the day’s trade 52 points or 0.20 percent down.
Similarly, the wider 50-scrip Nifty of the National Stock Exchange (NSE) closed in the red. It was lower by 23.55 points or 0.30 percent at 7,931.35 points.
The Sensex of the BSE, which opened at 26,239.39 points, closed at 26,117.85 points, down 51.56 points or 0.20 percent from the previous day’s close at 26,169.41 points.
The Sensex touched a high of 26,256.42 points and a low of 26,041.68 points during the intra-day trade.
Analysts pointed-out that the markets traded in a narrow range and consolidated as investors looked for fresh cues from the parliament on the GST bill.
“Lack of fresh triggers and concerns over a demand slowdown as indicated by ECI and PMI data impacted investor sentiments,” Anand James, co-head, technical research desk with Geojit BNP Paribas Financial Services, told IANS.
Vaibhav Agarwal, vice president and research head at Angel Broking, said that the investors were disappointed over the lack of progress towards the GST in the parliament.
“Investors will look for cues on the US rate hike when Fed Chair Janet Yellen speaks later today,” Agarwal told IANS.
“Markets are expecting a further stimulus from the ECB tomorrow, which could result in some positive upsides.”
Investors are hopeful that the European Central Bank (ECB) will announce a stimulus package during its next monetary policy meet slated for December 3, after latest data showed that Germany’s GDP growth has slowed.
Nitasha Shankar, vice president of research with YES Securities elaborated that broader markets witnessed minor profit booking along with the headline indices.
“Bank, tech and auto stocks came under selling pressure, while metal, pharma, FMCG (fast moving consumer goods) and energy stocks witnessed fresh long build-up,” Shankar said.
Sector-wise during the day’s trade, healthcare, FMCG and metal indices gained, while banking, capital goods automobile, banking and consumer durables indices came under selling pressure.
The S&P BSE metal index augmented by 226.18 points, healthcare index gained by 174.47 points and oil and gas index was was higher by 77.99 points.
The S&P BSE automobile index receded by 109.71 points, banking index declined by 57.94 points and consumer durables decreased by 42.40 points.
Major Sensex gainers during Wednesday’s trade were Lupin, up 3.24 percent at Rs.1,870.70; Tata Steel, up 2.46 percent at Rs.243.50; Bajaj Auto, up 1.55 percent at Rs.2,499.40; Maruti Suzuki, up 1.47 percent at Rs.4,619.85; and Cipla, up 1.35 percent at Rs.657.25.
The major Sensex losers were State Bank of India (SBI), down 1.83 percent at Rs.244.75; Infosys, down 1.53 percent at Rs.1,060.20; BHEL, down 1.42 percent at Rs.173.10; ICICI Bank, down 1.21 percent at Rs.270.30; and HDFC, down 1.15 percent at Rs.1,211.15.