Indian equity markets slip on negative global cues

Mumbai: Indian equity markets were suppressed by negative global cues and a weak rupee during the mid-afternoon session on Monday. Consequently, both the key equity indices traded in the red, as heavy selling pressure was witnessed in automobile, information technology (IT) and healthcare stocks. The wider 51-scrip Nifty of the National Stock Exchange (NSE) edged down 27.15 points or 0.31 per cent to 8,639.75 points. The barometer 30-scrip sensitive index (Sensex) of the BSE, which opened at 28,088.07 points, traded at 28,006.56 points (at 1.35 p.m.) -- down 70.44 points or 0.25 per cent from the previous close at 28,077 points. The Sensex has so far touched a high of 28,143.28 points and a low of 27,918.05 points during the intra-day trade. The BSE market breadth was slightly tilted in favour of the bears -- with 1,323 declines and 1,212 advances. On Friday, the benchmark indices had closed flat -- marginally in the red -- due to profit booking and negative global cues. The barometer index had receded by 46.44 points or 0.17 per cent, while the NSE Nifty slipped by 6.35 points or 0.07 per cent. Initially on Monday, the key equity indices opened on a flat note with a slightly negative bias following cues from negative Asian markets. The markets also traded with apprehension as caution prevailed ahead of a speech by Federal Reserve Chair Janet Yellen later in the week. Further, investors were seen cautious after government's decision on Saturday to appoint economist and banker Urjit R. Patel as the next Governor of the Reserve Bank of India (RBI). Moreover, a weak rupee and lower crude oil prices also dented investors' sentiments. “The equity markets are slightly negative following global cues, mainly the Asian markets,” Anand James, Chief Market Strategist at Geojit BNP Paribas Financial Services, told IANS. “The markets are also partially affected by the announcement of a new RBI governer. However, it is too early to say how far the appointment is going to affect the markets.”