Inflationary concerns subdue market; metal stocks fall
Mumbai : Inflationary concerns as well as mixed global cues subdue India’s key equity indices during late-afternoon trade session on Wednesday.Accordingly, rising crude oil prices along with mixed Asian markets had dented investors’ sentiments.However, the key two indices — S&P BSE Sensex and NSE Nifty50 — had a gap-up opening but fell thereafter.Globally, Asian markets were largely down following inflation worries due to surging energy prices.On the domestic front, volumes on the NSE remained high but all sectoral indices except ‘Bankex’ were in the red.At 2.35 p.m., the 30-scrip sensitive index traded at 61,171.91 points, down 544.14 points or 0.88 per cent.Similarly, the NSE Nifty50 traded lower. It fell to 18,224.05 points, down by 194.70 points or 1.06 per cent.”Indian markets are the worst performers in the Asian region.
Volumes on the NSE remains high while advance decline ratio is deep into the negative,” said Deepak Jasani, Head of Retail Research, HDFC Securities.”Globally stocks were mixed as participants weighed encouraging corporate results with inflationary pressures. A small recovery may be seen towards the end but Nifty may still end up deep in the negative.”According to Gaurav Garg, Head of Research, CapitalVia Global Research: “Indian equity benchmarks added losses and continued to trade in red in the afternoon session.””The benchmarks dragged by consumer durable, metal and basic materials stocks. Sentiments of investors are cautious as foreign institutional investors (FIIs) stood as net sellers in the capital markets.”