Profit booking, negative global cues subdue equity markets

Mumbai: Profit booking, negative global cues and a weak rupee subdued the Indian equity markets on Friday. Heavy selling pressure was witnessed in automobile and information technology (IT) stocks. The wider 51-scrip Nifty of the National Stock Exchange (NSE) slipped by 11.95 points or 0.14 per cent to 8,661.30 points. The barometer 30-scrip sensitive index (Sensex) of the BSE, which opened at 28,167.66 points, traded at 28,076.78 points (at 2.15 p.m.) -- down 46.66 points or 0.17 per cent from the previous close at 28,123.44 points. The Sensex has so far touched a high of 28,212.30 points and a low of 28,026.12 points during the intra-day trade. In contrast, the BSE market breadth was tilted in favour of the bulls -- with 1,413 advances and 1,159 declines. On Thursday, the benchmark indices had closed in the green prompted by positive global cues and value buying. The barometer index had closed higher by 118.07 points or 0.42 per cent, while the NSE Nifty edged up 49.20 points or 0.57 per cent. "Negative Asian and European markets weighed heavy on the domestic equity indices," Anand James, Chief Market Strategist at Geojit BNP Paribas Financial Services, told IANS. "Profit booking, along with a weak rupee also dented investors' sentiments." According to Dhruv Desai, Director and Chief Operating Officer of Tradebulls, banking and auto stocks traded with mixed sentiments on profit booking. "IT and pharma stocks traded with sideways to firm sentiments, whereas aviation stocks faced selling pressure due to higher crude oil prices," Desai noted. "FMCG stocks traded with sideways sentiments on lack of buying support. Sugar stocks traded firm on short covering and some lower levels buying." Desai added that Nifty is likely to face resistance at higher levels due to firm USD/INR futures prices.