Anxiety over quarterly results subdue sentiments, markets trade flat

Caution over the upcoming quarterly results, rising crude prices and profit bookings subdued investor sentiment and led a barometer index of Indian equities to trade flat during the mid-afternoon session on Wednesday.

Furthermore, both bellweather indices of the Indian equity markets, which had rallied for the past five consecutive sessions, receded a day after the International Monetary Fund (IMF) report downgraded India's growth to 7.3 percent for the current fiscal.

On Tuesday, the barometer 30-scrip sensitive index (S&P Sensex) of the Bombay Stock Exchange (BSE) closed with gains of 147 points or 0.55 percent. Tuesday was also the fifth consecutive session of gains for the index.

In total, the index has gained 1,316 points since September 29, when the Reserve Bank of India (RBI) had cut key lending rates by 50 basis points. The markets were expecting an easing of only 25 basis points.

On Wednesday, the wider 50-scrip Nifty of the National Stock Exchange (NSE) was trading flat. It was marginally up by 13.75 points or 0.17 percent to 8,166.65 points.

The S&P BSE Sensex which opened at 26,966.86 points, was trading at 26,993.77 points (1.35 p.m.) - 60.89 points or 0.23 percent up from its previous close at 26,932.88 points.

The Sensex has so far touched a high of 27069.33 points and a low of 26,877.51 points in the intra-day trade.

Market analysts pointed out that investors' anxiety before the release of second quarter results, rising crude prices and downgrade of growth rate has subdued the markets.

"Anxiety over the upcoming earnings season has impacted the investors' sentiments. Tuesday's IMF's growth rate downgrade and rising crude oil prices have also caused worries for the investors," Anand James, co-head, technical research desk with Geojit BNP Paribas Financial Services, told IANS.

"There was also disappointment over the fact that the Bank of Japan (BoJ) did not announce any stimulus or monetary easing. The markets were expecting a stimulus package to be announced by BoJ."

Sector-wise, automobiles, metals, consumer durables, oil and gas and realty stocks witnessed healthy buying.

However, information technology (IT), healthcare, technology, entertainment and media (Teck), banking and capital goods stocks came under intense selling pressure.

The S&P BSE automobile index zoomed by 229.01 points, metal index augmented by 201.38 points, consumer durables index gained by 88.08 points, oil and gas index rose by 80.41 points and realty index was higher by 34.85 points.

The S&P BSE IT index receded by 109.98 points, healthcare index declined by 64.80 points, Teck index was lower by 55.51 points, banking index fell by 16.38 points and capital goods index slipped by 5.00 points.