Weak global cues drag Indian equity markets

Mumbai, Nov 2: Weak global cues dragged the Indian equity markets during the mid-afternoon trade session on Wednesday.

Heavy selling pressure was witnessed in oil and gas, healthcare and banking stocks.

The wider 51-scrip Nifty of the National Stock Exchange (NSE) edged down by 90.35 points or 1.05 per cent to 8,535.90 points. 

The barometer 30-scrip sensitive index (Sensex) of the BSE, which opened at 27,679.32 points, traded at 27,585.39 points (at 1.32 p.m.) -- down 291.22 points or 1.04 per cent, from its previous close at 27,876.61 points.

The Sensex has so far touched a high of 27,679.32 points and a low of 27,535.02 points during the intra-day trade.

The BSE market breadth was skewed in favour of the bears -- with 1,933 declines and 832 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.

Besides, the global markets remained cautious over a possible rate-hike during the ongoing two-day US Fed's FOMC (Federal Open Market Committee) meet.

"Both the BSE Sensex and Nifty 50 are trading down on account of weak global cues," Astha Jain, Senior Research Analyst, Hem Securities, told IANS.

"Market sentiment is weak ahead of the upcoming US presedential elections and caution on a possible rate-hike in the ongoing FOMC (Federal Open Market Committee) meet."

According to Dhruv Desai, Director and Chief Operating Officer of Tradebulls, the CNX Nifty traded lower tracking bearish global cues.

"IT, banking, pharma, auto and oil-gas stocks traded down due to selling pressure and profit booking at higher levels from traders," Desai said.

"Textile, aviation, media-entertainment and FMCG stocks also traded down tracking overall bearish sentiments in Indian equity markets."