Profit bookings subdue markets; BSE Sensex down 116 Points

Mumbai, Dec 22: Profit bookings, coupled with political turmoil and upcoming US macro-data amidst thin volumes, subdued Indian equity markets on Monday, as a barometer index shed 116 points during the late-afternoon trade session on Tuesday.

Initially, both the bellwether indices of the Indian equity markets opened on a flat note in sync with their Asian peers.

Nevertheless, Both the key indices rose on the back of some stock-specific buying and lower crude oil prices during the mid-afternoon trade session.

However, they soon ceded their gains, as profit bookings, parliamentary logjam and upcoming US macro-data subdued sentiments.

In addition, the delay in passage of crucial GST (Goods and Services Tax) bill eroded investors confidence.

The barometer 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE) was trading lower by 116 points.

Similarly, the wider 50-scrip Nifty of the National Stock Exchange (NSE) was trading in the red. It was lower by 40 points or 0.51 percent at 7,794.70 points.

The Sensex of the S&P Bombay Stock Exchange (BSE), which opened at 25,731.07 points, was trading at 25,619.60 points (at 2.55 p.m.) — down 116.30 points or 0.45 percent from the previous day’s close at 25,735.90 points.

The BSE Sensex has so far touched a high of 25,787.21 points and a low of 25,485.17 points during the intra-day trade.

The BSE Sensex had closed the previous session on Monday, up 216.68 points or 0.85 percent, while the Nifty was higher by 72.50 points or 0.93 percent.

“Profit bookings on the gains made during the past couple of sessions has dragged markets lower,” Anand James, co-head, technical research desk with Geojit BNP Paribas Financial Services, told IANS.

“Parliamentary turmoil and the upcoming US GDP (gross domestic product) figures are capping gains on the higher side.”

The US GDP figures will be closely followed by investors, as it is the first crucial data greeting markets after the FOMC (Federal Open Market Committee) decided to raise US benchmark rates.  (IANS)