Weak Global Cues Depress Indian Equity Markets 

Mumbai: Weak global cues, such as uncertainty over US presidential elections and the US Federal Open Market Committee (FOMC) decision, depressed the Indian equity markets on Wednesday.

Both the key indices witnessed intense selling pressure and closed the day's trade with losses of more than one per cent each. The wider 51-scrip Nifty of the National Stock Exchange (NSE) edged down by 112.25 points or 1.30 per cent to 8,514 points.

The barometer 30-scrip sensitive index (Sensex) of the BSE, which opened at 27,679.32 points, closed at 27,527.22 points -- down 349.39 points or 1.25 per cent, from its previous close at 27,876.61 points. The Sensex touched a high of 27,679.32 points and a low of 27,500.81 points during the intra-day trade.

The BSE market breadth was skewed in favour of the bears -- with 1,967 declines and 965 advances.

On Tuesday, the benchmark indices had closed on a flat note on the back of weak global markets, profit booking and an outflow of foreign funds. The barometer index had declined by 53.60 points or 0.19 per cent, while the NSE Nifty inched up by 0.55 points or 0.01 per cent.

Initially on Wednesday, the key equity indices opened on a negative note in sync with their Asian peers.

Dhruv Desai, Director and Chief Operating Officer of TradebullsThe Nifty witnessed volatile movement in the second half of the session due to short covering from traders. However, it failed to hold the gains and faced fresh selling in second half of the session. IT, banking, pharma, Auto and Oil-gas stocks traded down on selling pressure. Textile, aviation, media-entertainment and FMCG stocks also traded with bearish sentiments, while cement and power stocks traded down on profit booking.

In terms of investments, provisional data with exchanges showed that foreign institutional investors (FIIs) sold stocks worth Rs 667.37 crore, while domestic institutional investors (DIIs) bought scrip worth Rs 407.27 crore.

Sector-wise, all the 19 sub-indices of the BSE witnessed heavy selling pressure, led by healthcare, oil and gas, and banking stocks.

The S&P BSE healthcare index plunged by 350.62 points, the oil and gas index declined by 339.78 points, and the banking index receded by 256.44 points.

Major Sensex gainers during Wednesday's trade were: Mahindra and Mahindra (M&M), up 3.54 per cent at Rs 1,369.35; Hindustan Unilever (HUL), up 0.74 per cent at Rs 841.45; NTPC, up 0.74 per cent at Rs 156.10; and Axis Bank, up 0.05 per cent at Rs 475.70.

Major Sensex losers were: ONGC, down 4.10 per cent at Rs 277.35; Tata Motors, down 3.19 per cent at Rs 514; State Bank of India (SBI), down 2.75 per cent at Rs 251.30; Sun Pharmaceuticals, down 2.61 per cent at Rs 714.70; and Reliance Industries, down 2.31 per cent at Rs 1,024.05.

--IANS