Mumbai June 6 (IANS) Profit-booking after two consecutive sessions of touching new highs coupled with negative global cues and caution on the onset of the Reserve Bank of India s Monetary Policy Committee (MPC) two-day meet pulled the Indian equity markets lower on Tuesday.
The key equity indices slipped from their fresh intra-day highs and closed in the red as heavy selling pressure was witnessed in consumer durables automobile and capital goods stocks.
The NSE Nifty crossed the 9 700 mark for the first time to touch a new high of 9 709.30 points during intra-day trade. The BSE Sensex too touched a fresh intra-day high of 31 430.32 points.
On a closing basis however the Nifty of the National Stock Exchange (NSE) fell by 37.95 points or 0.39 per cent to 9 637.15 points.
The 30-scrip Sensitive Index (Sensex) of the BSE which opened at 31 420.85 points closed at 31 190.56 points -- also down 118.93 points or 0.38 per cent from its previous close at 31 309.49 points.
The BSE market breadth was bearish -- with 1 816 declines and 889 advances.
Markets ended lower on Tuesday after two sessions of gains. The losses came on the back of weak global cues Deepak Jasani Head - Retail Research HDFC Securities told IANS.
Investors also maintained caution ahead of the RBI monetary policy review outcome tomorrow June 7. Broad market indices like the BSE mid-cap and small-cap indices fell more and underperformed the main indices.
The S&P BSE mid-cap index fell by 0.62 per cent and the small-cap index by 0.65 per cent.
Anand James Chief Market Strategist Geojit Financial Services said: Strong monsoon onset and the RBI meet underpinned markets helping Nifty to 9 700 but weak Asian cues and rising tensions in the Middle East kept risk appetite under check.
With GST deadline looming focus is now on the executional issues and the preparedness of firms to meet the roll-out deadline James added.
On the currency front the rupee weakened by seven paise to 64.43 per US dollar from its previous close of 64.36.
In investments provisional data with the exchanges showed that foreign institutional investors (FIIs) purchased stocks worth Rs 61.16 crore while domestic institutional investors (DIIs) divested scrips worth Rs 360.01 crore.
One of the positive factors for the market was that the Indian Meteorological Department has upgraded its monsoon rain forecast to 98 per cent of long-term period average against 96 per cent it forecast in April Dhruv Desai Director and Chief Operating Officer of Tradebulls told IANS.
Tyre stocks gained momentum today as JK Tyre Apollo Tyres Ceat MRF and Balkrishna Industries were up 1-4 per cent on correction in crude oil prices for the third consecutive session.
Sector-wise the S&P BSE consumer durables index plunged by 332.58 points the automobile index by 262.95 points and the capital goods index by 206.40 points.
On the other hand the S&P IT index surged by 239.69 points and the TECK (technology media and entertainment) index was up by 94.45 points.
Major Sensex gainers on Tuesday were: Tata Consultancy Services (TCS) up 3.63 per cent at Rs 2 695.40; Infosys up 2 per cent at Rs 979.45; Wipro up 0.91 per cent at Rs 560.65; Dr. Reddy s Lab up 0.61 per cent at Rs 2 550.35; and Adani Ports up 0.26 per cent at Rs 361.85.
Major Sensex losers were: Tata Motors down 3.58 per cent at Rs 460.90; NTPC down 2.65 per cent at Rs 158.25; ONGC down 2.28 per cent at Rs 171.50; ITC down 2.05 per cent at Rs 311; and Larsen and Toubro (LT) down 1.60 per cent at Rs 1 775.80.
--IANS
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Indian equities slip on profit booking, weak global cues (Roundup)
