Equities trade flat-to-negative, global cues spook investors

Weak global cues and heavy selling pressure in oil and gas, IT and consumer durables stocks pulled the Indian equity markets lower to trade on a flat-to-negative note during the mid-afternoon session on Thursday.

According to market observers, investors were cautious ahead of election in Britain and European Central Bank's policy review (due later during the day).

At 12.45 p.m., the Nifty of the National Stock Exchange (NSE) inched down by 11.10 points or 0.11 per cent to 9,652.80 points.

The 30-scrip Sensitive Index (Sensex) of the BSE, which opened at 31,316.91 points, traded at 31,218.18 points -- down 53.10 points or 0.17 per cent from its previous close at 31,271.28 points.

It has so far touched a high of 31,354.51 points and a low of 31,214.35 points during intra-day trade.

However, the BSE market breadth was slightly bullish -- with 1,258 advances and 1,194 declines.

"Equity benchmarks opened positive, extending gains from yesterday (Wednesday) in spite of cautious trade in global markets ahead of UK election. IT stocks continued to trade weak with the sector trading with loss of more than one per cent," Dhruv Desai, Director and Chief Operating Officer of Tradebulls, told IANS.

"Market at present is trading flat-to-negative. Consumer durables, capital goods and FMCG sectors are trading in negative, whereas healthcare and metal sectors are trading in the green, up by more than one per cent."

Dr. Reddy's Lab, Sun Pharma and Tata Steel were the top gainers on the BSE, while Tata Consultancy Services (TCS), Gail and Adani Ports were the top losers.

On Wednesday, the benchmark indices closed in the green, cheered by the decision of the Reserve Bank of India (RBI) to boost liquidity levels in the commercial banking system.

The Nifty closed at 9,663.90 points -- up 26.75 points or 0.28 per cent, while the BSE Sensex was up 80.72 points or 0.26 per cent to close at 31,271.28 points.

--IANS

ppg/vt