Sliding Asian markets dent Indian equities, Sensex down 133 points

Mumbai, Aug 31:

Despite hopes of healthy economic expansion data, the slide in Asian bourses and a weaker rupee dented the Indian equity markets during the mid-afternoon trade session on Monday.

Bearish sentiments due to negative Asian cues dampened the trade at the barometer 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE), which fell by 133 points or 0.51 percent.

Weak sentiments were also witnessed at the wider 50-scrip Nifty of the National Stock Exchange (NSE). The CNX Nifty of the NSE declined by 40.45 points or 0.51 percent at 7,961.50 points.

The S&P BSE Sensex which opened at 26,469.42 points, was trading at 26,259.06 points (2.15 p.m.)– down 133.32 points or 0.51 percent from the previous day’s close at 26,392.38 points.

The S&P BSE Sensex touched a high of 26,504.73 points and a low of 26,215.16 points in the intra-day trade so far.

Analysts point out that the negative cues eminating out of Asian markets especially due to the slide in the Chinese markets has made investors reluctant to chase higher prices.

“The markets are lower due to the fall in Asian markets. Despite attractive valuations the bargain hunting is being resisted due to the Asian markets factor and its consequence– the weakening in rupee value,” Anand James, co-head, technical research, Geojit BNP Paribas, told IANS.

“However, the markets might pick-up on the back of healthy GDP data due to be released later today. A healthy data coupled-with government’s attempts to restart the consensus building efforts to pass the GST bill (goods and services tax) have the potential to support the Indian equities.”

Sector-wise, healthy gains were made in automobile, capital goods, consumer durables, banks and information technology (IT) came under heavy selling pressure.

The S&P BSE automobile index plunged by 157.66 points, the capital goods index receded by 135.64 points, consumer durables index declined by 77.72 points, the bank index decreased by 70.55 points and the IT index edged-lower by 66.32 points.

On the other hand, healthcare index augmented by 157.57 points, metal index gained by 54.14 points and oil and gas sector was higher by 35.94 points. (IANS)