Equity market trades flat; IT stocks down

The Indian equities market traded flat during the mid-afternoon trade session on Wednesday.

Negative global cues, coupled with slide in factory output data for July and profit booking dented investors' sentiments.

The wider 51-scrip Nifty of the National Stock Exchange (NSE) inched up by 6.45 points or 0.07 per cent to 8,722.05 points.

The barometer 30-scrip sensitive index (Sensex) of the BSE, which opened at 28,345.49 points, traded at 28,354.08 points (at 2.15 p.m.) -- up mere 0.54 points from its previous close at 28,353.54 points.

The Sensex has so far touched a high of 28,416.41 points and a low of 28,259.38 points during the intra-day trade.

However, the BSE market breadth was tilted in favour of the bulls -- with 1,696 advances and 909 declines.

On Monday, both the key Indian indices were dragged lower by increased possibility of a US rate hike, coupled with profit-booking and outflow of foreign funds.

The barometer index had plunged by 443.71 points or 1.54 per cent, while the NSE Nifty dipped by 151.10 points or 1.70 per cent.

The Indian equity markets were closed on Tuesday on account of Eid-ul-Zuha.

According to Dhruv Desai, Director and Chief Operating Officer of Tradebulls, the CNX Nifty witnessed some recovery due to short covering.

"IT stocks faced resistance at higher levels due to profit booking, while banking, auto and pharma stocks held early gains due to buying support at lower levels. Oil-gas stocks traded with mixed sentiments," Desai said.

"Aviation stocks traded with mixed sentiments on profit booking, and power sector stocks witnessed buying support from lower levels. FMCG stocks traded with mixed sentiments on short covering at lower levels."

--IANS

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